Latest news with #FoxFactoryHolding
Yahoo
07-03-2025
- Business
- Yahoo
Fox Factory Holding's (NASDAQ:FOXF) Problems Go Beyond Weak Profit
Fox Factory Holding Corp.'s (NASDAQ:FOXF) stock showed strength, with investors undeterred by its weak earnings report. While shareholders may be willing to overlook soft profit numbers, we believe that they should also be taking into account some other factors which may be cause for concern. View our latest analysis for Fox Factory Holding We can see that Fox Factory Holding received a tax benefit of US$5.5m. This is meaningful because companies usually pay tax rather than receive tax benefits. Of course, prima facie it's great to receive a tax benefit. However, the devil in the detail is that these kind of benefits only impact in the year they are booked, and are often one-off in nature. In the likely event the tax benefit is not repeated, we'd expect to see its statutory profit levels drop, at least in the absence of strong growth. So while we think it's great to receive a tax benefit, it does tend to imply an increased risk that the statutory profit overstates the sustainable earnings power of the business. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Fox Factory Holding reported that it received a tax benefit, rather than paid tax, in its last report. As a result we don't think its profit result, which includes that tax-boost, is a good guide to its sustainable profit levels. Because of this, we think that it may be that Fox Factory Holding's statutory profits are better than its underlying earnings power. In further bad news, its earnings per share decreased in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you'd like to know more about Fox Factory Holding as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 3 warning signs for Fox Factory Holding you should be mindful of and 1 of these is concerning. This note has only looked at a single factor that sheds light on the nature of Fox Factory Holding's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
01-03-2025
- Automotive
- Yahoo
Fox Factory Holding Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags
Revenue: US$1.39b (down 4.8% from FY 2023). Net income: US$6.55m (down 95% from FY 2023). Profit margin: 0.5% (down from 8.3% in FY 2023). The decrease in margin was primarily driven by lower revenue. EPS: US$0.16 (down from US$2.86 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 29%. Looking ahead, revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Auto Components industry in the US. Performance of the American Auto Components industry. The company's shares are up 6.9% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for Fox Factory Holding you should be aware of, and 1 of them can't be ignored. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Shareholders in Fox Factory Holding (NASDAQ:FOXF) are in the red if they invested three years ago
It's not possible to invest over long periods without making some bad investments. But you have a problem if you face massive losses more than once in a while. So spare a thought for the long term shareholders of Fox Factory Holding Corp. (NASDAQ:FOXF); the share price is down a whopping 79% in the last three years. That'd be enough to cause even the strongest minds some disquiet. And more recent buyers are having a tough time too, with a drop of 59% in the last year. Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. View our latest analysis for Fox Factory Holding While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Fox Factory Holding saw its EPS decline at a compound rate of 59% per year, over the last three years. In comparison the 40% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. This positive sentiment is also reflected in the generous P/E ratio of 102.75. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Fox Factory Holding's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. Fox Factory Holding shareholders are down 59% for the year, but the market itself is up 23%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Fox Factory Holding better, we need to consider many other factors. Take risks, for example - Fox Factory Holding has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about. Fox Factory Holding is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
