2024-02-23 18:14:29 ET
One of the most unforgivable transgressions a publicly traded company can commit is to miss on its earnings. That was the reason investors punished vehicle components manufacturer Fox Factory Holding (NASDAQ: FOXF) on Friday. The market reacted sharply to the company's latest set of quarterly figures, trading out of the stock and sending its value down by almost 27% in price.
Due to what management characterized as " challenging macro and industry headwinds," Fox Factory's fourth-quarter net sales slid to $332 million from the year-ago tally of nearly $409 million. On a generally accepted accounting principles ( GAAP) basis the company earned only $4 million and change ($0.10), a far cry from the almost $53 million profit it netted in the same quarter of 2022.
On average, analysts following Fox Factory's stock were expecting a much higher per-share net income figure of $0.83. At least the company beat on the top line, as those pundits were collectively modeling slightly over $327 million for that line item.
For further details see:
Why Fox Factory Holding Stock Plummeted by 27% Today