Core Viewpoint - Fox Factory Holding Corp. will announce its first-quarter results for the period ending April 4, 2025, on May 8, 2025, after market close [1] Group 1: Company Overview - Fox Factory Holding Corp. is a global leader in designing, engineering, and manufacturing premium products for specialty sports and vehicles [3] - The company’s portfolio includes brands like FOX, Marucci, and Method Race Wheels, known for their innovative products that cater to professional athletes and enthusiasts [3] - Fox Factory produces shocks, suspension, and components for powered vehicle and bicycle manufacturers, as well as premium baseball and softball gear [3] - The company diversifies its offerings by acquiring complementary businesses to enhance its engineering and manufacturing capabilities [3] Group 2: Conference Call Details - A conference call will be held on May 8, 2025, at 4:30 p.m. ET to discuss the quarterly results [2] - The call will be available live on the company's website and archived for one year [2] - North American listeners can dial (800) 343-5172, while international listeners can call (203) 518-9856, using conference ID FOXFQ125 or 36937125 [2]

Company Overview - Fox Factory Holding (FOXF) shares increased by 19.6% to $21.97 in the last trading session, following a period of 25.8% loss over the past four weeks, indicating a significant rebound in stock performance [1][2] Market Context - The surge in Fox Factory's stock is attributed to a broader market rebound after the Trump administration announced a temporary halt on reciprocal tariffs for most countries, which alleviated fears of a recession due to potential tariff increases [2] Earnings Expectations - Fox Factory is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year decline of 24.1%. Revenue is projected to be $328.55 million, down 1.5% from the same quarter last year [3] - The consensus EPS estimate for Fox Factory has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Comparison - Fox Factory Holding is part of the Zacks Automotive - Domestic industry, where Lucid Group (LCID) also operates. Lucid Group's stock closed 9.9% higher at $2.55, with an 11% return over the past month [4] - Lucid Group's consensus EPS estimate has increased by 10.7% over the past month to -$0.22, representing a 26.7% change from the previous year [5]

Core Viewpoint - Fox Factory Holding (FOXF) shares have increased by 1.5% recently, closing at $27.73, with a potential upside of 35.5% based on Wall Street analysts' mean price target of $37.57 [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $5.09, indicating variability among analysts [2] - The lowest price target is $30, suggesting an 8.2% increase, while the highest target is $45, indicating a potential surge of 62.3% [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement direction [7] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about FOXF's earnings prospects, with a positive trend in earnings estimate revisions [9] - Over the past 30 days, one estimate has increased, leading to a 6.4% rise in the Zacks Consensus Estimate [10] - FOXF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Conclusion on Price Targets - While consensus price targets may not reliably indicate the extent of potential gains, they can provide a directional guide for price movement [12]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Fox Factory Holdings (FOXF) as a strong value stock based on its financial metrics and rankings [2][3][6] Company Analysis - Fox Factory Holdings (FOXF) currently has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - FOXF has a PEG ratio of 1.33, significantly lower than the industry average of 2.69, suggesting it may be undervalued relative to its expected earnings growth [4] - The stock's PEG has fluctuated between a high of 4.07 and a low of 1.32 over the past year, with a median of 1.72 [4] - FOXF's P/CF ratio stands at 10.86, which is favorable compared to the industry's average P/CF of 21.40, indicating a solid cash flow outlook [5] - Over the past 12 months, FOXF's P/CF has ranged from a high of 18.16 to a low of 10.23, with a median of 12.73 [5] - These financial metrics collectively suggest that FOXF is likely undervalued at the moment, supported by a strong earnings outlook [6]

Company Overview - Fox Factory Holding Corp. conducted its Fourth Quarter and Full Year Fiscal 2024 Earnings Conference Call on February 27, 2025 [1][2] - The call featured key participants including the Chief Legal Officer, Chief Executive Officer, and Chief Financial Officer [1][3] Earnings Presentation - The earnings release was made available prior to the call, accessible on the investor relations section of the company's website [4] - The conference included a structured format with business updates from the CEO followed by a review of quarterly results and outlook from the CFO [3]

Financial Data and Key Metrics Changes - Total consolidated net sales in Q4 2024 were $352.8 million, an increase of 6.1% compared to $332.5 million in the same quarter last year [41] - Gross margin increased by 120 basis points to 28.9% in Q4 2024, compared to 27.7% in the same quarter last year [42] - Net loss in Q4 2024 was $0.1 million, or zero per diluted share, compared to net income of $4.1 million, or $0.10 per diluted share, in the same quarter last year [44] - Adjusted EBITDA increased to $40.4 million for Q4 2024, compared to $38.8 million in the same quarter last year [45] Business Line Data and Key Metrics Changes - In the Powered Vehicle Group (PVG), net sales were $116 million, slightly down from $118 million in the prior year quarter, but up 5% sequentially [16] - In the Aftermarket Applications Group (AAG), net sales were $112 million, down from $121 million in the prior year quarter, but up 11% sequentially [22] - In the Sports Segment Group (SSG), net sales were $125 million compared to $93 million last year, reflecting a 41.5% increase from a full quarter of Marucci [29] Market Data and Key Metrics Changes - The automotive sector continues to face headwinds from ongoing OEM production issues, with expectations for flat-to-down, low single-digit retail sales in 2025 [19] - The bike business is experiencing varied recovery rates across different geographies, channels, and customers, with a cautious outlook for 2025 [30] - The European market showed strength in early 2024, but purchasing habits weakened in Q4 due to inventory concerns [32] Company Strategy and Development Direction - The company is focused on operational excellence and strategic positioning across segments, with a comprehensive cost reduction program aimed at improving margins [56] - The company is diversifying across segments, products, markets, and geographies, with a focus on product development initiatives to create new customer engagements [15] - The company aims to restore best-in-class EBITDA margins as market conditions normalize while driving higher rates of free cash flow [16] Management's Comments on Operating Environment and Future Outlook - Management expects continued market pressures in 2025 but remains committed to operational efficiency and cost management to protect margins [21] - The company anticipates net sales for fiscal year 2025 in the range of $1.385 billion to $1.485 billion, with adjusted earnings per diluted share between $1.60 and $2.60 [52] - Management acknowledges the complexity of the regulatory environment, including tariffs, and is actively analyzing potential impacts [37] Other Important Information - The company has identified $25 million in savings across COGS and SG&A as part of its cost optimization plan [13] - The company is expanding its product portfolio, including the launch of the AGwagon, designed for agricultural use [26] - The company is working on several new products expected to launch in 2025, which are anticipated to revolutionize the suspension and bike market [32] Q&A Session Summary Question: Update on Taiwan facilities consolidation and capacity - Capacity is in line with pre-COVID levels, with increased efficiency within the same footprint, and future growth may occur outside Taiwan [62] Question: Update on the upfitting business and dealership dialogue - Strong relationships are being cultivated with dealers, and efforts are being made to reposition inventory effectively [66] Question: Insights on the bike business and revenue expectations - The company is being conservative in its outlook for the bike business, with potential upside but cautious due to previous forecasting challenges [72] Question: Impact of the new MLB partnership on Marucci - Growth is expected to ramp up in Q2 and Q3, with positive signs but no specific numbers provided yet [76] Question: Conversations with OEM partners regarding tariffs - The company feels relatively insulated from tariff impacts due to its focus on premium products and strong relationships with OEMs [84]

Financial Data and Key Metrics Changes - Total consolidated net sales in Q4 2024 were $352.8 million, an increase of 6.1% compared to $332.5 million in the same quarter last year [41] - Gross margin increased by 120 basis points to 28.9% in Q4 2024, compared to 27.7% in the same quarter last year [42] - Net loss in Q4 2024 was $0.1 million, compared to net income of $4.1 million in the same quarter last year [44] - Adjusted EBITDA increased to $40.4 million for Q4 2024, compared to $38.8 million in the same quarter last year [45] Business Line Data and Key Metrics Changes - In the Powered Vehicle Group (PVG), net sales were $116 million, slightly down from $118 million in the prior year but up 5% sequentially [16] - In the Aftermarket Applications Group (AAG), net sales were $112 million, down from $121 million in the prior year quarter but up 11% sequentially [22] - In the Sports Segment Group (SSG), net sales were $125 million compared to $93 million last year, reflecting a 41.5% increase from a full quarter of Marucci [29] Market Data and Key Metrics Changes - The automotive sector continues to face headwinds from ongoing OEM production issues, with expectations for flat-to-down, low single-digit retail sales in 2025 [19] - The bike business is experiencing varied recovery rates across different geographies, with a cautious outlook for 2025 [30] - The European market showed strength in early 2024, but purchasing habits weakened in Q4 due to inventory concerns [32] Company Strategy and Development Direction - The company is focused on operational excellence and strategic positioning across segments, with a comprehensive cost reduction program aimed at improving margins [56][58] - The company is diversifying across segments, products, markets, and geographies, with a focus on product development initiatives to create new customer engagements [15] - The company is strategically repositioning its business to operate more efficiently, with a goal to restore best-in-class EBITDA margins as market conditions normalize [15] Management's Comments on Operating Environment and Future Outlook - Management expects continued market pressures in 2025 but remains committed to operational efficiency and cost management to protect margins [21] - The company anticipates net sales for fiscal year 2025 in the range of $1.385 billion to $1.485 billion, with adjusted earnings per diluted share between $1.60 and $2.60 [52] - Management acknowledges the complexity of the regulatory environment, including tariffs, and is actively analyzing potential impacts [37][38] Other Important Information - The company has identified $25 million in savings across COGS and SG&A as part of its cost optimization plan [13] - The company is expanding its product portfolio, including the launch of the AGwagon, designed for agricultural use [26] - The company is focused on debt paydown as a priority for capital allocation, having paid down $63 million in debt during Q4 [51] Q&A Session Summary Question: Update on Taiwan facilities consolidation and capacity - Capacity in Taiwan is in line with pre-COVID levels, with increased efficiency within the same footprint [62] Question: Update on the upfitting business and dealership dialogue - The company is cultivating strong relationships with dealers and repositioning inventory effectively [66] Question: Insights on the bike business and revenue expectations - The company is being conservative in its revenue expectations for the bike business, despite positive signals [72] Question: Impact of the new MLB partnership on Marucci - Growth from the MLB partnership is expected to materialize in Q2 and Q3, with ongoing preparations [76] Question: Conversations with OEM partners regarding tariffs - The company feels relatively insulated from tariff impacts due to its focus on premium products and U.S.-produced chassis [83]

Core Viewpoint - Fox Factory Holding (FOXF) reported a revenue increase of 6.1% year-over-year for the quarter ended December 2024, with a revenue of $352.84 million, surpassing the Zacks Consensus Estimate by 11.63% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.31, down from $0.48 in the same quarter last year, but above the consensus estimate of $0.29, resulting in an EPS surprise of 6.90% [1] - The company’s stock has returned -6.3% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] Segment Performance - Net Sales for Aftermarket Applications Group reached $112.19 million, exceeding the average estimate of $96.40 million [4] - Net Sales for Powered Vehicles Group was $116.16 million, compared to the average estimate of $93.90 million, reflecting a year-over-year decline of 1.9% [4] - Net Sales for Specialty Sports Group amounted to $124.49 million, slightly above the estimated $124.20 million, showing a significant year-over-year increase of 33.3% [4]

Group 1 - Fox Factory Holding (FOXF) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, but down from $0.48 per share a year ago, representing an earnings surprise of 6.90% [1] - The company achieved revenues of $352.84 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 11.63% and up from $332.5 million year-over-year [2] - Over the last four quarters, Fox Factory Holding has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed, losing about 13.6% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $324.18 million, and for the current fiscal year, it is $1.94 on revenues of $1.41 billion [7] - The Zacks Industry Rank for Automotive - Domestic is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Fox Factory Holding Corp. reported a significant increase in revenue, achieving $500 million for the fiscal year ended January 3, 2025, representing a 15% growth compared to the previous year[7]. - Approximately 33%, 36%, and 27% of net sales in the years ended January 3, 2025, December 29, 2023, and December 30, 2022, respectively, were attributable to powered vehicle-related products[48]. - In 2024, approximately 44% of net sales resulted from OEM customers, 49% from dealers and distributors in the aftermarket channel, and 7% from direct-to-consumer channels[60]. - Net sales attributable to the company's 10 largest customers accounted for approximately 36% of total net sales in fiscal years 2024, 2023, and 2022[61]. - North American net sales totaled $1,097.3 million, $1,127.6 million, and $1,009.2 million, representing 79%, 77%, and 63% of total net sales in 2024, 2023, and 2022, respectively[63]. - International net sales were $296.6 million, $336.6 million, and $593.3 million, accounting for 21%, 23%, and 37% of total net sales in fiscal years 2024, 2023, and 2022, respectively[63]. - Net sales from the five largest customers accounted for approximately 28%, 27%, and 23% of total net sales in fiscal years 2024, 2023, and 2022 respectively[146]. Product Development and Innovation - The company has expanded its product offerings, introducing over 20 new products in the last year, including the award-winning Grip X2 damper, which was recognized as the 2024 suspension product of the year[26]. - Fox Factory's innovative technologies, such as the Live Valve suspension system, are now utilized in multiple vehicle categories, contributing to a 25% increase in sales in the powered vehicles segment[26]. - The company maintains a strong commitment to research and development, with a dedicated team of engineers contributing to product innovation and enhancements[24]. - Research and development efforts are central to the company's strategy, involving collaboration with OEM customers and feedback from professional athletes to innovate products[56]. - The company must continuously enhance existing products and develop new ones to maintain market competitiveness and customer satisfaction[112]. Market Expansion and Strategy - Fox Factory's strategic focus on high-end segments has positioned it well for growth, with premium-priced products driving an increase in average retail sales prices by 10%[18]. - The company has established strong relationships with leading OEMs, including Ford and Toyota, which has enhanced its market presence and brand recognition[16]. - Fox Factory's international market expansion has resulted in a 30% increase in sales from overseas markets, particularly in Europe and Asia[23]. - International expansion is seen as a significant opportunity, with rising consumer discretionary income in developing markets expected to drive demand for premium performance products[35]. - The company plans to increase its aftermarket penetration by adding dealers and distributors and expanding aftermarket-specific products and services[34]. Acquisitions and Growth - Recent acquisitions include SCA Performance Holdings in March 2020, Manifest Joy LLC in May 2021, and CWH Blocker Corp. in March 2023, which are expected to expand the company's product offerings and geographic manufacturing footprint[33]. - The acquisition of Marucci in 2023 expanded the company's manufacturing footprint to include baseball and softball gear, supported by domestic production facilities and timber mills[77]. - The company completed several acquisitions, including Marucci Sports, LLC in November 2023, and plans to evaluate additional acquisitions in the future[177]. Operational Challenges and Risks - The company relies on a limited number of suppliers, which poses risks of increased material costs and supply chain disruptions[107]. - The company’s financial condition may be adversely affected by geopolitical conflicts, such as tensions between Taiwan and China, impacting supply chains and costs[106]. - The company faces intense competition from manufacturers with greater financial and marketing resources, which could negatively impact its business and operating results[115]. - Economic conditions significantly impact consumer spending on discretionary products, which could adversely affect sales[118]. - The company faces challenges in accurately forecasting product demand, which could lead to manufacturing excess or shortages, adversely impacting gross margins and cost of sales[158]. Compliance and Regulatory Issues - The company is subject to extensive regulations that may require additional expenses or modifications to product offerings to maintain compliance[193]. - The company is committed to complying with the Uyghur Forced Labor Prevention Act, which may present challenges in achieving full traceability in its supply chain[210]. - The company is subject to evolving privacy laws, including the GDPR and CCPA, which impose substantial compliance costs and penalties for violations[174]. - Environmental laws impose strict liabilities on the company, and non-compliance could lead to significant fines and operational restrictions[201]. Economic and Market Conditions - The ongoing effects of the COVID-19 pandemic have created volatility in the global economy, impacting the company's financial condition and results of operations[120]. - Changes in customer preferences and market dynamics could lead to fluctuations in profitability and demand for the company's products[133]. - Currency fluctuations, particularly between the U.S. Dollar and foreign currencies, could adversely affect gross margins and overall financial performance[147]. - Economic uncertainties in the U.S., Europe, and other international markets complicate demand forecasting, potentially leading to increased material and freight costs[158]. Employee and Labor Relations - The company employs approximately 4,100 employees across various regions, with a focus on maintaining a safe and healthy work environment[82]. - Increased employee costs due to government-mandated wage laws and evolving labor market conditions could impact the company's financial condition[166]. - The company relies on a skilled workforce, particularly in engineering and research and development, to maintain product quality and innovation[131]. Financial Management - The company has $705.1 million in indebtedness and $496.8 million in revolving credit available under the 2022 Credit Facility as of January 3, 2025[186]. - The Federal Reserve increased benchmark interest rates multiple times in 2022 and 2023, which may increase the company's interest expense and reduce available cash for operations[188]. - A hypothetical 100 basis point increase in interest rates would result in an approximately $2.1 million increase in interest expense for the year ended January 3, 2025[190].