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FOXF – Management has concerns about their ability to meet revenue guidance, non-legacy business product launches, and relationships in the automobile market

March 26, 2019

  • Fox Factory Holding Corp. (FOXF:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.1x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management has concerns about their ability to meet revenue guidance, non-legacy business product launches, and relationships in the automobile market
  • Specifically, management may lack confidence in their ability to maintain EPS levels, realize economies of scale, and meet revenue guidance. Furthermore, they may be concerned about sales seasonality, geographical sales mix, and their ability to manage inventory and accounts receivable. In addition, management may be concerned about non-legacy suspension business product launches, and may lack confidence in their ability to sustain growth throughout their product lineup. Also, they may be concerned about their shock and steering stabilizer package launches, the strength of their automobile market relationships, and their ability to grow their customer base. Finally, they may be exaggerating product demand from OEM and aftermarket customers and may be downplaying concerns about their Georgia facility capacity build-out

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