Monro Muffler Brake (NASDAQ:MNRO) Releases Earnings Results

Monro Muffler Brake (NASDAQ:MNRO) released its quarterly earnings data on Wednesday. The auto parts company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.04, Briefing.com reports. The business had revenue of $293.39 million for the quarter, compared to analyst estimates of $295.19 million. Monro Muffler Brake had a positive return on equity of 2.77% and a negative net margin of 1.60%.Monro Muffler Brake’s revenue was down 4.0% compared to the same quarter last year. During the same period last year, the firm posted $0.19 earnings per share.

Here are the key takeaways from Monro Muffler Brake’s conference call:

• Monro reports clear operational momentum, delivering four consecutive quarters of positive comparable store sales and a 60 basis point year-over-year expansion in gross margin to 34.9%, signaling improving profitability trends.
• Management is scaling a multi-channel marketing push—expanded digital media, CRM activation, and call center support now covering over 830 stores—which they say has driven incremental calls, sales, and gross profit dollars and will roll out further.
• The company completed a major store optimization (145 underperforming stores closed) and has monetized real estate aggressively, exiting 57 leases and selling 25 locations for cumulative proceeds of $22.8 million YTD, with the disposition process expected to largely finish in upcoming quarters.
• Q3 results were mixed—total sales fell 4% (largely from store closures) but continuing-store comps rose 1.2% and tire sales were up 5%; adjusted operating income and adjusted EPS were slightly weaker year-over-year, reflecting transition costs and reinvestment in marketing.
• Financial position and liquidity remain strong with $48 million of cash from operations YTD, net bank debt of ~$40 million, approximately $425 million of available capacity on the credit facility, maintained dividend distributions, and $25–$35 million of planned capex.

Monro Muffler Brake Price Performance

Shares of MNRO stock traded down $0.19 on Wednesday, hitting $19.84. 448,013 shares of the stock traded hands, compared to its average volume of 724,725. The firm has a market cap of $595.51 million, a price-to-earnings ratio of -29.75, a PEG ratio of 2.45 and a beta of 1.01. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.48 and a quick ratio of 0.16. The firm has a 50 day simple moving average of $20.09 and a two-hundred day simple moving average of $17.93. Monro Muffler Brake has a 52 week low of $12.19 and a 52 week high of $21.77.

Monro Muffler Brake Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 16th. Investors of record on Tuesday, December 2nd were given a dividend of $0.28 per share. The ex-dividend date was Tuesday, December 2nd. This represents a $1.12 annualized dividend and a yield of 5.6%. Monro Muffler Brake’s payout ratio is -167.16%.

Insider Buying and Selling

In other Monro Muffler Brake news, major shareholder Carl C. Icahn bought 639,473 shares of Monro Muffler Brake stock in a transaction dated Tuesday, November 4th. The shares were purchased at an average cost of $15.19 per share, for a total transaction of $9,713,594.87. Following the acquisition, the insider directly owned 4,439,914 shares in the company, valued at approximately $67,442,293.66. This represents a 16.83% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Insiders purchased 1,278,132 shares of company stock worth $20,815,969 over the last three months. 2.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Monro Muffler Brake

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Monro Muffler Brake by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,775 shares of the auto parts company’s stock worth $257,000 after buying an additional 780 shares during the period. Royal Bank of Canada grew its position in shares of Monro Muffler Brake by 139.8% in the first quarter. Royal Bank of Canada now owns 27,904 shares of the auto parts company’s stock valued at $404,000 after purchasing an additional 16,268 shares during the last quarter. Jones Financial Companies Lllp acquired a new stake in Monro Muffler Brake during the first quarter worth approximately $559,000. Jane Street Group LLC raised its stake in Monro Muffler Brake by 85.2% during the first quarter. Jane Street Group LLC now owns 79,839 shares of the auto parts company’s stock worth $1,155,000 after purchasing an additional 36,734 shares during the period. Finally, Empowered Funds LLC raised its holdings in Monro Muffler Brake by 5.6% in the first quarter. Empowered Funds LLC now owns 141,635 shares of the auto parts company’s stock valued at $2,049,000 after buying an additional 7,464 shares during the period.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on MNRO shares. Wall Street Zen upgraded Monro Muffler Brake from a “sell” rating to a “hold” rating in a research report on Sunday, January 18th. Wells Fargo & Company reduced their price objective on Monro Muffler Brake from $18.00 to $16.00 and set an “equal weight” rating for the company in a research note on Thursday, October 30th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Monro Muffler Brake in a research report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Monro Muffler Brake presently has an average rating of “Hold” and a consensus target price of $17.67.

Monro Muffler Brake Company Profile

Monro Muffler Brake (NASDAQ:MNRO) is a leading provider of undercar repair and maintenance services for light vehicles in the United States. The company’s core offerings include brake systems, exhaust systems, steering and suspension repairs, tire sales and service, oil and lube changes, wheel alignment, multi-point inspections, and state vehicle inspections. Monro serves both retail customers and fleet accounts, focusing on fast, reliable service and preventive maintenance to help extend vehicle life and safety.

Headquartered in Rochester, New York, Monro was originally founded in 1957 and has grown through a combination of organic expansion and strategic acquisitions.