Benzinga | Nov 9, 2020 10:22AM EST

Earnings Preview for Fox Factory Holding

On Tuesday, November 10, Fox Factory Holding (NASDAQ: FOXF) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Fox Factory Holding earnings will be near $0.87 per share on sales of $252.49 million, according to analysts. In the same quarter last year, Fox Factory Holding reported earnings per share of $0.83 on sales of $211.32 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 4.82%. Revenue would be up 19.48% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.26 0.56 0.62 0.79EPS Actual 0.50 0.52 0.65 0.83Revenue Estimate 154.98 M 179.63 M 180.34 M 205.90 MRevenue Actual 183.10 M 184.36 M 185.88 M 211.32 M

Stock Performance

Shares of Fox Factory Holding were trading at $97.32 as of November 06. Over the last 52-week period, shares are up 59.14%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fox Factory Holding is scheduled to hold the call at 16:30:00 ET and can be accessed here.