Motorcar Parts of America (NASDAQ:MPAA) Issues Quarterly Earnings Results

Motorcar Parts of America (NASDAQ:MPAA) issued its earnings results on Monday. The auto parts company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.14), FiscalAI reports. Motorcar Parts of America had a net margin of 0.31% and a return on equity of 5.76%. The business had revenue of $167.70 million during the quarter, compared to the consensus estimate of $189.00 million.

Here are the key takeaways from Motorcar Parts of America’s conference call:

• The company missed fiscal Q3 expectations after a large customer cut purchases, estimating up to approximately $50 million impact and revising FY26 sales guidance to $750–$760 million and operating income to $72–$79 million.
• Management says orders from that customer are rebounding, has secured numerous new business commitments, and expects gains in its braking business to drive margin expansion.
• Gross margin declined to 19.6% (from 24.1% a year ago) due to higher returns as a percent of sales, lower capacity absorption and mix, but management expects sequential improvement in Q4 from higher volumes and cost actions.
• Liquidity and cash generation are strong with about $146 million of cash/availability, net bank debt reduced to $70.5 million, and recent share repurchases, enabling continued buybacks and debt reduction.
• The company plans to explore strategic alternatives for its non‑core EV Emulator business after further R&D on a next‑generation emulator, indicating potential divestiture or repositioning.

Motorcar Parts of America Trading Down 17.5%

NASDAQ:MPAA opened at $10.84 on Tuesday. Motorcar Parts of America has a 52 week low of $6.04 and a 52 week high of $18.12. The firm has a 50-day moving average price of $12.83 and a two-hundred day moving average price of $14.02. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.46 and a current ratio of 1.46. The firm has a market cap of $212.03 million, a price-to-earnings ratio of 98.55 and a beta of 1.32.

Analyst Ratings Changes

Several research firms have weighed in on MPAA. Zacks Research raised Motorcar Parts of America from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Motorcar Parts of America in a research note on Monday, December 29th. Loop Capital set a $20.00 target price on shares of Motorcar Parts of America in a report on Friday, December 12th. Finally, Wall Street Zen lowered shares of Motorcar Parts of America from a “strong-buy” rating to a “buy” rating in a research note on Sunday, December 14th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $20.00.

Institutional Investors Weigh In On Motorcar Parts of America

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BNP Paribas Financial Markets lifted its stake in Motorcar Parts of America by 2,191.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,887 shares of the auto parts company’s stock worth $32,000 after purchasing an additional 2,761 shares in the last quarter. Quarry LP increased its position in shares of Motorcar Parts of America by 1,117.9% in the third quarter. Quarry LP now owns 4,214 shares of the auto parts company’s stock worth $70,000 after purchasing an additional 3,868 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Motorcar Parts of America by 7,127.3% in the second quarter. JPMorgan Chase & Co. now owns 8,745 shares of the auto parts company’s stock valued at $98,000 after purchasing an additional 8,624 shares in the last quarter. New York State Common Retirement Fund bought a new stake in Motorcar Parts of America during the second quarter valued at approximately $109,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Motorcar Parts of America in the 2nd quarter worth $112,000. 83.48% of the stock is currently owned by institutional investors.

Motorcar Parts of America declared that its Board of Directors has authorized a stock repurchase plan on Monday, December 8th that authorizes the company to buyback $57.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 22.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Motorcar Parts of America Company Profile

Motorcar Parts of America, Inc is a leading North American designer, manufacturer and distributor of aftermarket automotive replacement parts. The company’s product portfolio spans collision and mechanical components, providing solutions for steering and suspension, brake systems, engine cooling, electrical and drivelines. Through a combination of proprietary brands and exclusive licensing agreements, Motorcar Parts of America offers an extensive selection of both new and remanufactured parts to meet the needs of automotive service professionals and retailers.

In addition to its core collision and under-hood product lines, the company markets specialty items such as performance accessories, tools and equipment.