Fox Factory (FOXF) shares plunged 21.81% in after-hours trading on Thursday following the release of its disappointing third-quarter earnings report and weak outlook. The suspension systems manufacturer's results fell short of analyst expectations, raising concerns about the company's near-term growth prospects.
For the third quarter, Fox Factory reported net sales of $376.4 million, up 4.8% year-over-year but missing the analyst consensus estimate of $383.3 million. The company's adjusted earnings per share (EPS) came in at $0.23, significantly below the expected $0.55, representing a 57.88% miss and a 34.29% decrease from the same period last year. Fox Factory also reported a net loss of $662,000, or $0.02 per diluted share, compared to net income of $4.8 million, or $0.11 per diluted share, in the prior year's quarter.
Adding to investor concerns, Fox Factory provided a cautious outlook for the fourth quarter and full year 2025. The company expects Q4 net sales between $340 million and $370 million, with adjusted EPS ranging from $0.05 to $0.25. For the full year, Fox Factory anticipates net sales of $1.445 billion to $1.475 billion and adjusted EPS between $0.92 and $1.12. These projections suggest ongoing challenges for the company, including higher tariff costs and continued investments that may pressure profitability in the near term. The market's severe reaction reflects growing unease about Fox Factory's ability to navigate these headwinds and maintain its growth trajectory in the competitive auto parts industry.
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