Fox Factory (NASDAQ:FOXF) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Fox Factory Holding Corp. (NASDAQ:FOXF) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $18.86, but opened at $21.23. Fox Factory shares last traded at $20.2270, with a volume of 194,951 shares traded.

The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.19. The firm had revenue of $358.12 million for the quarter, compared to the consensus estimate of $352.94 million. Fox Factory had a positive return on equity of 5.20% and a negative net margin of 20.25%.The company’s revenue was down 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.40 earnings per share.

Key Headlines Impacting Fox Factory

Here are the key news stories impacting Fox Factory this week:

• Positive Sentiment: Fox Factory reported second-quarter adjusted earnings of $0.37 per share, well above the $0.16-$0.18 analyst consensus, while revenue of $358.1 million exceeded estimates of approximately $352.9 million. Fox Factory second-quarter financial results
• Positive Sentiment: Management guided third-quarter revenue to $355 million-$380 million, above the roughly $345 million consensus estimate, signaling expected improvement despite seasonal and market challenges. Fox Factory third-quarter outlook
• Positive Sentiment: The company reaffirmed its goal of achieving $50 million in cost savings and outlined full-year 2026 revenue of approximately $1.42 billion-$1.47 billion. The focus on efficiency could support margins and earnings recovery. Fox Factory 2026 sales outlook
• Neutral Sentiment: Despite the earnings beat, quarterly revenue declined 4.5% year over year, and EPS fell from $0.40 in the comparable period. This indicates that the recovery remains dependent on stronger demand and successful cost controls. Fox Factory Q2 earnings beat
• Negative Sentiment: Fox Factory continues to report a negative net margin, while brokerages maintain a consensus “Hold” recommendation, suggesting analysts remain cautious about the company’s profitability and outlook. Fox Factory consensus recommendation

Wall Street Analysts Forecast Growth

FOXF has been the topic of several analyst reports. Zacks Research upgraded shares of Fox Factory from a “strong sell” rating to a “hold” rating in a research report on Wednesday, June 3rd. Needham & Company LLC restated a “buy” rating on shares of Fox Factory in a research report on Wednesday, June 3rd. Weiss Ratings cut Fox Factory from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, May 11th. Stifel Nicolaus set a $24.00 price objective on Fox Factory in a report on Thursday, April 16th. Finally, Bank of America downgraded Fox Factory from a “neutral” rating to an “underperform” rating and reduced their target price for the stock from $24.00 to $20.00 in a research note on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $23.20.

Institutional Investors Weigh In On Fox Factory

Several large investors have recently bought and sold shares of FOXF. Nantahala Capital Management LLC lifted its holdings in Fox Factory by 200.3% in the 4th quarter. Nantahala Capital Management LLC now owns 2,188,300 shares of the company’s stock valued at $37,442,000 after purchasing an additional 1,459,652 shares in the last quarter. Engine Capital Management LP grew its holdings in shares of Fox Factory by 162.3% during the first quarter. Engine Capital Management LP now owns 2,026,230 shares of the company’s stock worth $33,352,000 after buying an additional 1,253,808 shares in the last quarter. Towle & Co. purchased a new stake in shares of Fox Factory during the fourth quarter worth $8,967,000. Renaissance Technologies LLC raised its position in shares of Fox Factory by 294.3% in the fourth quarter. Renaissance Technologies LLC now owns 547,693 shares of the company’s stock valued at $9,371,000 after buying an additional 408,800 shares during the last quarter. Finally, Teachers Retirement System of The State of Kentucky raised its position in shares of Fox Factory by 3,173.3% in the fourth quarter. Teachers Retirement System of The State of Kentucky now owns 388,666 shares of the company’s stock valued at $6,650,000 after buying an additional 376,792 shares during the last quarter.

Fox Factory Trading Up 7.9%

The company’s 50 day moving average price is $18.03 and its two-hundred day moving average price is $17.75. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.99 and a quick ratio of 1.52. The stock has a market capitalization of $853.78 million, a PE ratio of -2.82, a P/E/G ratio of 0.77 and a beta of 1.35.

Fox Factory Company Profile

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company’s FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.