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 (FOXF -15.92%) 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.

Top- and bottom-line skids

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.

Of those mentioned headwinds, Fox Factory singled out the United Auto Workers strike and higher interest rates sapping customer demand, among other factors.

NASDAQ: FOXF

Fox Factory
Today's Change
(-15.92%) -$3.96
Current Price
$20.91
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FOXF

Key Data Points

Market Cap
$872M
Day's Range
$20.66 - $23.53
52wk Range
$20.66 - $54.85
Volume
2
Avg Vol
559,919
Gross Margin
28.07%
Dividend Yield
N/A

Guidance fell notably short of estimates

Another factor driving Fox Factory's stock down on Friday was the company's full-year 2024 guidance. It is forecasting that net sales will come in at $1.53 billion to $1.68 billion. While that range is notably above the $1.46 billion of 2023, it doesn't reach the almost $1.74 billion consensus analyst estimate.

Fox Factory feels that its non-GAAP (adjusted) earnings per share will land at $2.30 to $2.60. That's below both its 2023 result of $3.95, and the collective prognosticator expectation of $4.79.