Fox Factory Holding Corp. (FOXF) saw its stock price plummet 5.55% in pre-market trading on Friday following the release of its second-quarter earnings report. The company, which specializes in high-performance suspension products, disappointed investors by missing analyst expectations despite posting year-over-year growth.

Fox Factory reported adjusted earnings of $0.40 per share for the quarter ended June 30, falling short of the mean analyst expectation of $0.44 per share. This miss appears to be the primary driver behind the stock's sharp decline. However, it's worth noting that the reported earnings still represent a slight improvement from the $0.38 per share earned in the same quarter last year.

On a more positive note, the company's revenue rose 7.6% to $374.86 million, surpassing analyst projections of $349.52 million. Despite this top-line growth, Fox Factory's net income for the quarter stood at a modest $2.74 million, with reported earnings per share at just $0.07. The discrepancy between adjusted and reported EPS suggests significant non-recurring items or adjustments in the company's financial reporting.

Despite the earnings miss and subsequent stock drop, Wall Street maintains a generally positive outlook on Fox Factory. The current average analyst rating on the shares is "buy," with 3 "strong buy" or "buy" recommendations and 4 "hold" ratings. The median 12-month price target stands at $30.00, which, prior to today's pre-market drop, represented a slight premium to the stock's last closing price of $30.10. However, investors should note that earnings estimates have seen a 2.6% downward revision over the past three months, indicating some caution among analysts regarding the company's near-term prospects.