By RTT News, September 19, 2013, 05:19:00 PM EDT
(RTTNews.com) - Fox Factory Holding Corp. ( FOXF ), a maker of suspension products for recreational vehicles, Thursday reported a higher second-quarter profit, helped by a 16 percent increase in sales. Results for the quarter were in line with Wall Street estimates.
The company provided some weak earnings outlook for the third quarter and for the full year. Shares of the company slid 2.5 percent in after-hours trading on the Nasdaq.
Fox Factory makes suspension products for mountain bikes and power sports including all-terrain vehicles, snowmobiles, and off-road vehicles. The company made its debut on the Nasdaq in August.
The Scotts Valley, California-based company posted quarterly net income of $5.7 million or $0.17 per share, compared with $4.3 million or $0.14 per share last year.
Excluding items, adjusted earnings for the quarter were $6.7 million or $0.19 per share, compared with $5.3 million or $0.17 per share in the prior year.
On average, six analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter climbed to $70.3 million from $60.7 million a year ago, and in line with analysts' expectations of $70.32 million.
Results reflect strong sales growth for both mountain bikes and powered vehicle products.
Gross margins were up 190 basis points to 29 percent.
For the third quarter, Fox Factory expects earnings of $0.23 to $0.27 per share and sales of $79 million to $82 million. Analysts currently expect the earnings of $0.27 per share for the quarter, on sales of $80.44 million.
For fiscal 2013, the company anticipates earnings of $0.61 to $0.67 per share and sales of $264 million to $270 million. Analysts expect earnings of $0.69 per share on sales of $267.18 million.
Last month, Fox Factory closed its initial public offering of about 9.9 million common shares at a price of $15.00 each, and netted proceeds of about $36 million.
Shares of the company closed Thursday at $18.38, down $0.19 or 1.02%, on a volume of 271 thousand shares. In after hours, the stock dropped $0.39 or 2.12%.
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