Why Fox Factory’s stock plunged 27% today

One of the most unforgivable crimes a public company can commit is missing out on revenue. This is why investors punished auto parts manufacturers. Fox Factory Holding (Foxfox -26.82%) On Friday. The market reacted sharply to the company’s latest quarterly numbers, selling off shares and sending the stock down nearly 27%.

Upper and lower line skids

Due to some management “We’re challenging macro and industry headwinds.” Fox Factory’s fourth-quarter net sales decreased to $332 million from the prior year’s tally of approximately $409 million. On a generally accepted accounting principles (GAAP) basis, the company had 400 It only brought in $10,000, a change ($0.10). This is a far cry from the nearly $53 million it earned in net income in the same quarter in 2022.

On average, analysts covering Fox Factory’s stock were expecting a much higher earnings per share figure of $0.83. At least the company won at the top level, as experts modeled a total of just over $327 million for those items.

Among the headwinds mentioned, Fox Factory cited a strike by the United Auto Workers and high interest rates that dampened customer demand.

Guidance fell well short of expectations.

Another factor driving Fox Factory’s stock price lower on Friday was the company’s full-year guidance for 2024. Net sales are expected to range from $1.53 billion to $1.68 billion. This range is noticeably higher than 2023’s $1.46 billion, but falls short of analyst estimates of nearly $1.74 billion.

Fox Factory expects non-GAAP (adjusted) earnings per share to range from $2.30 to $2.60. This is lower than the 2023 outcome of $3.95 and the collective forecaster’s expectation of $4.79.