Why Holley Stock Is Getting Gutted Today
Shares of high-performance auto parts manufacturer Holley (NYSE: HLLY) were getting crushed in trading on Friday after the company provided a business update for the second quarter in which it also slashed its guidance for full-year sales and adjusted earnings. The stock was down 35.7% as of 12:40 p.m. ET today.
Holley said supply chain challenges and the ongoing computer chip shortage affected its quarterly results by preventing it from shipping many of its most popular products. That will cause sales to drop 7% to $179.4 million, and adjusted profits will plunge by 31% to $37.2 million.
CEO Tom Tomlinson said worsening economic conditions and weak consumer demand also affected the business. Because conditions deteriorated even more during the period, Holley was forced to revise its outlook downward.
Source Fool.com
