Core Viewpoint - Holley Inc. (HLLY) is showing potential for a bullish breakout as it has reached a key support level and experienced a "golden cross" in its moving averages [1][2]. Technical Analysis - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), indicating a bullish trend [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and a subsequent upward price movement [3]. Performance Metrics - HLLY has seen a significant rally of 84.3% over the past four weeks, suggesting strong momentum [4]. - The stock currently holds a 2 (Buy) rating on the Zacks Rank, indicating positive market sentiment [4]. Earnings Outlook - The earnings outlook for HLLY is favorable, with three upward revisions in earnings estimates over the past 60 days, and no downward revisions [4]. - The Zacks Consensus Estimate for HLLY has also increased, reinforcing the bullish sentiment [4]. Investment Consideration - Investors are encouraged to monitor HLLY for potential gains due to its technical indicators and positive earnings revisions [6].

Core Insights - Holley Performance Brands is launching new activations for its fall flagship events, including the 16th annual LS Fest East, which is the largest LS-powered celebration in the U.S. [1][2] - The event will feature new attractions such as Burnout Wars and Ultra4 USA off-road racing, aimed at enhancing engagement and expanding Holley's visibility through social media [2][3] - Holley emphasizes its mission to connect with automotive enthusiasts and foster community engagement through innovative experiences [3][5] Event Details - LS Fest East will take place at Beech Bend Raceway in Bowling Green, Kentucky, from September 5-7, 2025, followed by MoParty and Ford Festival later in the month [10] - The events are expected to draw tens of thousands of visitors, significantly benefiting the local economy through increased business activity [5] Economic Impact - Holley's events are projected to generate millions of dollars for the Bowling Green economy, benefiting local hotels, restaurants, and businesses [5] - The company is also leveraging social media to connect with over 1 million additional automotive enthusiasts online, enhancing brand presence and engagement [6] Strategic Partnerships - A new activation with Callaway Cars will debut at LS Fest East, showcasing the strategic partnership and shared passion for LS-powered performance [3][8] - Holley aims to create a powerful experience that encourages enthusiasts to return to its events year after year [7]

Core Insights - Holley Performance Brands has proactively reduced its debt by an additional $15 million, totaling $90 million in debt repayment since September 2023, demonstrating its commitment to strengthening its balance sheet and enhancing financial flexibility [1][2] - The recent debt paydown was executed through opportunistic repurchases of its first lien term loan facility at a discount, funded entirely with free cash flow, which is expected to generate up to $3.7 million in annualized net interest savings [2] Financial Performance - The company has experienced strong free cash flow generation, which has contributed to its ability to reduce debt and strengthen its balance sheet [2] - Holley expects to achieve a leverage ratio at or below 4.0x by year-end, marking its lowest level in over three years [2] Strategic Focus - Holley Performance Brands is recognized for its operational excellence and disciplined execution across teams, which has fueled core business growth for two consecutive quarters [2] - The company is committed to enhancing the enthusiast experience and driving growth through innovation, focusing on four consumer vertical groupings: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing [4]

Summary of Holley (HLLY) FY Conference Call - August 12, 2025 Company Overview - Holley is a 120-year-old company known for serving automotive enthusiasts, with a consumer base of approximately 70 million enthusiasts, which is larger than many other consumer discretionary segments [3][2] - The company went public in 2021 and has since been focused on transforming into a billion-dollar platform in the consumer auto performance enthusiast space [5][4] Market Segmentation and Addressable Markets - Holley has organized its business into four distinct verticals: Domestic Muscle, Trucking Off-Road, Euro and Import, and Safety and Racing [5][6] - The total addressable market for Domestic Muscle is estimated at $5 billion, while Trucking Off-Road is $26 billion, Euro and Import is $14 billion, and Safety and Racing is also significant [7][8][9] - The company is seeing a shift in consumer interest towards vehicles from the late 1990s and early 2000s, indicating a long runway for growth in the Domestic Muscle segment [26][6] Financial Performance and Growth Strategy - Holley has posted back-to-back growth in its core business for two consecutive quarters, outperforming competitors in a flat market [14][18] - The company has focused on operational improvements and cost reductions to maintain margins and EBITDA, even in a challenging market [16][30] - Holley aims to reduce its net leverage from over four times to closer to three times through free cash flow generation and operational efficiency [37][38] Consumer Trends and Market Conditions - The company acknowledges that the automotive industry has faced challenges, with a depressed SAAR (Seasonally Adjusted Annual Rate) of 15 million vehicles, but believes that a return to 17 million is possible with lower interest rates and aggressive manufacturer rebates [22][23] - Holley’s consumer base remains stable and enthusiastic, with spending patterns expected to normalize post-COVID [24][59] Tariffs and Supply Chain Management - Holley has implemented various tariff mitigation strategies and believes it is well-positioned to navigate supply chain challenges better than competitors [30][32] - The company recognizes the complexities of moving supply chains out of China, emphasizing the importance of quality and craftsmanship [33][34] M&A Strategy and Future Outlook - Holley maintains a robust pipeline for M&A opportunities but is cautious about pursuing large transactions until leverage is optimized [41][42] - The company is focused on smaller deals that align with its growth strategy without jeopardizing its path to lower leverage [41][42] Investor Relations and Market Perception - Holley has seen a 60% increase in share performance over the last five days, attributed to consistent execution of its growth strategy [55][56] - The management emphasizes the importance of building credibility with investors by delivering on promises and maintaining operational excellence [55][58] Key Takeaways - Holley is positioned for growth in multiple automotive segments, with a strong focus on operational efficiency and market share expansion - The company is navigating macroeconomic challenges while maintaining a stable consumer base and exploring strategic M&A opportunities - Holley’s management is committed to improving investor relations and demonstrating the value of its business model through consistent performance and transparency

Core Insights - Holley Performance Brands and Callaway Cars have formed a partnership to develop performance packages for GM trucks and SUVs, aiming to enhance dealer network access and serve automotive enthusiasts [1][4][5] Partnership Overview - The collaboration combines Callaway's engineering expertise with Holley's operational capabilities to deliver turnkey, dealer-approved performance solutions [2][9] - The performance packages will target popular GM models including Silverado, Sierra, Suburban, Tahoe, Yukon, Escalade, and Corvette, with varying price points [3][4] Strategic Initiatives - Holley will lead digital and direct-to-consumer sales, while Callaway will focus on GM dealership outreach [3] - Investments will be made by Holley to support vehicle development, marketing, and activation efforts, including multi-channel outreach campaigns [6] New Facilities and Production Capacity - A new Callaway Performance Center will be established in Bowling Green, Kentucky, to enhance production capacity and availability of dealer-backed solutions [8] - The center will focus on Corvette and GM truck and SUV offerings, leveraging synergies with local production [7][8] Market Positioning - The partnership positions both companies to drive growth and deliver innovative products for automotive enthusiasts, enhancing their presence in the performance aftermarket [5][9] - Holley aims to solidify its status as a global leader in the automotive performance aftermarket through this collaboration [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Holley Inc. (HLLY) Analysis - Holley Inc. (HLLY) has seen a price increase of 46.1% over the past four weeks, indicating growing investor interest [3] - HLLY gained 44.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - HLLY has a beta of 1.35, suggesting it moves 35% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - HLLY has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - HLLY is trading at a Price-to-Sales ratio of 0.64, meaning investors pay 64 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides HLLY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Group 1 - Holley Inc. (HLLY) has shown solid improvement in earnings estimates, leading to positive short-term price momentum [1][3] - Analysts are increasingly optimistic about Holley's earnings prospects, as reflected in the upward trend of estimate revisions [2][3] - The Zacks Rank system indicates strong agreement among analysts in revising Holley's earnings estimates upward, resulting in improved consensus estimates for the next quarter and full year [3][10] Group 2 - For the current quarter, Holley is expected to earn $0.03 per share, representing a year-over-year increase of +400.0% [7] - The Zacks Consensus Estimate for Holley has increased by 36% over the last 30 days, with no negative revisions [7] - For the full year, the earnings estimate is $0.21 per share, reflecting a +5.0% change from the previous year, with a 9.47% increase in consensus estimates [8][9] Group 3 - Holley has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant stock performance [10] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [10] - Holley's stock has gained 29.9% over the past four weeks, driven by solid estimate revisions and earnings growth prospects [11]

Core Viewpoint - Holley Inc. (HLLY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Holley's earnings estimate for the fiscal year ending December 2025 is projected at $0.21 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.5% over the past three months [8]. Investment Implications - The upgrade reflects an improvement in Holley's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating Holley's strong position in terms of earnings estimate revisions [9][10].

Core Insights - Holley reported stronger-than-expected GAAP revenue of $166.7 million for Q2 2025, exceeding analyst estimates by $4.0 million, despite a 1.7% year-over-year decline in headline sales [1][5] - The core business sales increased by 3.9% after adjusting for business exits and discontinued items, indicating resilient momentum [1][5] - Profitability faced challenges, with adjusted EBITDA dropping to $36.4 million, down 5.0% from the previous year, and net income margin declining to 6.5% [1][7] Financial Performance - Q2 2025 EPS (Non-GAAP) was $0.09, a decrease of 10.0% from $0.10 in Q2 2024 [2] - Revenue (GAAP) was $166.7 million, compared to $169.5 million in Q2 2024, reflecting a 1.7% decline [2] - Adjusted EBITDA fell to $36.4 million from $38.3 million year-over-year, with a margin slip from 22.6% to 21.9% [2][7] - Free cash flow (Non-GAAP) reached a record $35.7 million, a 46.2% increase from $24.4 million in Q2 2024 [2][8] Business Strategy and Focus - Holley focuses on channel expansion, digital sales, and direct-to-consumer connections, aiming to strengthen its multi-brand portfolio and boost product innovation [4] - The company reported a 6.5% increase in B2B channel sales and over 8.6% growth in DTC orders, with third-party marketplace activity rising more than 28% [6] - R&D spending increased by 18.0% to $5.1 million, supporting new product launches across various categories [9][10] Cost Management and Tariff Response - Holley implemented an average price increase of 8.75% effective June 9, 2025, to mitigate tariff impacts, forecasting limited effects for the remainder of FY2025 [11] - The company reduced SG&A expenses by $1.6 million year-over-year, reflecting a focus on cost control and efficiency [11] Future Outlook - For FY2025, Holley projects revenue between $580 million and $595 million, indicating growth of 0.8% to 3.4% after normalizing for recent portfolio changes [13] - Adjusted EBITDA is expected to range from $116 million to $127 million, with capital expenditures forecasted between $10 million and $14 million [13] - The guidance suggests low single-digit growth in core segments, driven by channel momentum and proactive pricing strategies [14]

Company Performance - Holley Inc. reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, and down from $0.10 per share a year ago, representing an earnings surprise of -10.00% [1] - The company posted revenues of $166.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.53%, but down from $169.5 million year-over-year [2] - Over the last four quarters, Holley has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - Holley shares have lost approximately 32.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $134.7 million, and for the current fiscal year, it is $0.20 on revenues of $591.48 million [7] Industry Outlook - The Automotive - Original Equipment industry, to which Holley belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]