Holley (NYSE:HLLY) Announces Earnings Results, Misses Estimates By $0.01 EPS

Holley (NYSE:HLLY) issued its earnings results on Thursday. The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.01), FiscalAI reports. Holley had a net margin of 1.68% and a return on equity of 8.41%. The firm had revenue of $141.56 million during the quarter, compared to analysts’ expectations of $145.80 million.

Here are the key takeaways from Holley’s conference call:

• Core growth broadened: Third-quarter net sales rose 2.3% to $141.6 million, while core sales excluding exited businesses grew 6.7%, accelerating from 4.9% in Q2. American Performance returned to growth, and three of four divisions posted core growth.
• Margins and cash flow improved: Gross margin expanded 73 basis points to 44%, and adjusted EBITDA margin rose 120 basis points to 20.8%. Free cash flow increased to $8.8 million; management attributed the gains to cost savings, operational improvements, and exiting lower-margin businesses.
• Leverage reached its year-end target early: Holley reduced debt by $25 million in the quarter, bringing its leverage ratio to 3.5x and cumulative debt reduction since September 2023 to $125 million. The company also completed the SXTH Element acquisition after quarter-end and announced an Amotiv collaboration to expand its reach.
• Full-year guidance was narrowed at the top end: Holley now expects net sales of $610 million–$625 million and adjusted EBITDA of $127 million–$132 million. Management cited cautious consumer sentiment, higher fuel prices, macroeconomic uncertainty, and delays to some product launches, while keeping the bottom ends of the ranges unchanged.
• Euro & Import remained a weak spot: Core sales in the division fell 12.2%, which management attributed to lower in-stock rates and marketing activity shifted out of Q3. The company said inventory availability had improved entering Q4 and that it had adjusted the marketing calendar.

Holley Stock Down 2.6%

Shares of HLLY traded down $0.06 during midday trading on Friday, hitting $2.08. The company had a trading volume of 4,926,379 shares, compared to its average volume of 972,107. The company has a quick ratio of 1.39, a current ratio of 3.06 and a debt-to-equity ratio of 1.15. The company’s 50 day moving average price is $2.59 and its 200 day moving average price is $2.97. Holley has a 52 week low of $2.05 and a 52 week high of $4.48. The stock has a market cap of $252.76 million, a price-to-earnings ratio of 13.90 and a beta of 1.44.

Analysts Set New Price Targets

HLLY has been the topic of a number of research reports. Freedom Capital cut shares of Holley from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 13th. Zacks Research downgraded shares of Holley from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Weiss Ratings reissued a “sell (d)” rating on shares of Holley in a research report on Tuesday. DA Davidson set a $3.00 target price on shares of Holley in a report on Friday. Finally, Canaccord Genuity Group lowered their price target on Holley from $7.00 to $5.00 and set a “buy” rating for the company in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Holley presently has an average rating of “Hold” and an average target price of $4.20.

More Holley News

Here are the key news stories impacting Holley this week:

• Positive Sentiment: Holley reported continued sales growth and margin expansion, generating enough cash to prepay $25 million of debt. It said leverage reached its lowest level in four years and its 3.5x year-end leverage target was achieved a quarter early. Holley Q3 results
• Positive Sentiment: Canaccord Genuity lowered its price target to $5 from $7 but kept a Buy rating, signaling the analyst still sees significant potential upside from the recent share price. Canaccord price target update
• Neutral Sentiment: Management forecast 2026 adjusted EBITDA of $127 million–$132 million and net sales of $610 million–$625 million. The sales range’s upper end is near, but its midpoint is below, analysts’ roughly $624.6 million estimate. Holley 2026 outlook
• Negative Sentiment: Third-quarter EPS of $0.06 missed the $0.07 consensus, while revenue of $141.56 million was below analysts’ $145.8 million estimate. The shortfalls may weigh on sentiment despite year-over-year EPS growth from $0.03. Q3 earnings and revenue results

About Holley

Holley Inc is an automotive aftermarket company that designs, manufactures and distributes performance products for cars, trucks, powersports vehicles and other enthusiast applications. Its offerings include fuel systems, engine and ignition components, exhaust products, suspension and driveline components, electronic controls, vehicle accessories and safety equipment.

The company serves do-it-yourself consumers, professional installers, racing teams, automotive enthusiasts and original equipment manufacturers through a portfolio of established aftermarket brands.