Motorcar Parts of America (NASDAQ:MPAA) Releases Earnings Results, Misses Expectations By $0.91 EPS

Motorcar Parts of America (NASDAQ:MPAA) announced its earnings results on Monday. The auto parts company reported ($0.71) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.91), FiscalAI reports. Motorcar Parts of America had a negative return on equity of 0.57% and a negative net margin of 0.53%.The company had revenue of $168.02 million for the quarter, compared to analyst estimates of $183.00 million.

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

• Fiscal 2027 guidance was reaffirmed: net sales are expected to reach $780 million–$800 million, up 7.5%–10.2% year over year, with operating income of $86 million–$91 million and EBITDA of $95 million–$100 million. Management also expects more than $100 million of additional annualized sales by fiscal year-end, although that opportunity is excluded from current guidance due to timing uncertainty.
• Management expects the acquisition and relaunch of the Centric Parts brake brands by the end of the fiscal year to add meaningful growth, citing historical peak annualized sales of approximately $400 million and preliminary customer demand for the original product formulations.
• Long-term aftermarket demand appears favorable in management’s view, supported by an aging U.S. vehicle fleet, rising vehicle ownership, high new-car prices, and the non-discretionary nature of brake and rotating-electrical replacements. The company also expects opportunities in heavy-duty parts, Mexico and Latin America, and its diagnostic testing business.
• First-quarter net sales were $168 million and gross margin declined to 16.2% from 18.0% a year earlier, pressured by order timing, inventory-related ramp-up effects, non-cash and one-time expenses, and approximately $3.5 million of unfavorable foreign-exchange impact from the Mexican peso.
• The company used $11.3 million in operating cash flow during the quarter as it built inventory for new business, while net bank debt stood at $99.7 million and leverage was 1.26 times adjusted EBITDA. Management highlighted strong liquidity of approximately $112.4 million and repurchased $1.9 million of shares, with $20.1 million remaining under the authorization.

Motorcar Parts of America Stock Up 0.2%

NASDAQ MPAA traded up $0.02 during trading on Wednesday, reaching $12.47. 14,954 shares of the company’s stock were exchanged, compared to its average volume of 114,857. The company has a current ratio of 1.46, a quick ratio of 0.47 and a debt-to-equity ratio of 0.15. Motorcar Parts of America has a fifty-two week low of $9.29 and a fifty-two week high of $18.12. The company’s fifty day simple moving average is $14.05 and its 200-day simple moving average is $12.15. The firm has a market capitalization of $236.06 million, a PE ratio of -40.37 and a beta of 1.16.

Analyst Ratings Changes

MPAA has been the topic of a number of analyst reports. Cantor Fitzgerald reissued an “overweight” rating on shares of Motorcar Parts of America in a research note on Tuesday, June 9th. Wall Street Zen raised shares of Motorcar Parts of America from a “hold” rating to a “strong-buy” rating in a research note on Saturday, June 13th. Finally, Weiss Ratings upgraded shares of Motorcar Parts of America from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, June 9th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Motorcar Parts of America presently has a consensus rating of “Moderate Buy” and a consensus target price of $19.00.

Insider Activity

In related news, SVP Jamie Leigh Cook sold 14,074 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $15.03, for a total transaction of $211,532.22. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 8.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of MPAA. BNP Paribas Financial Markets increased its holdings in shares of Motorcar Parts of America by 2,191.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,887 shares of the auto parts company’s stock valued at $32,000 after acquiring an additional 2,761 shares during the last quarter. Quarry LP boosted its position in Motorcar Parts of America by 1,117.9% during 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 period. JPMorgan Chase & Co. grew its holdings in Motorcar Parts of America by 7,127.3% during 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 during the last quarter. New York State Common Retirement Fund bought a new position in shares of Motorcar Parts of America in 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 second quarter valued at approximately $112,000. 83.48% of the stock is owned by institutional investors and hedge funds.

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.