CarParts.com (NASDAQ:PRTS) Posts Quarterly Earnings Results, Beats Expectations By $1.12 EPS

CarParts.com (NASDAQ:PRTS) released its quarterly earnings data on Thursday, May 7th. The specialty retailer reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($1.15) by $1.12, Zacks reports. The firm had revenue of $131.96 million for the quarter, compared to analysts’ expectations of $131.38 million. CarParts.com had a negative return on equity of 61.91% and a negative net margin of 6.97%.

Here are the key takeaways from CarParts.com’s conference call:

• Adjusted EBITDA turned positive at $585,000 (first positive since Q1 2024), a nearly $7M year-over-year swing driven by advertising efficiency, warehouse labor improvements, offshore savings, and fixed-cost reductions now embedded in the run rate.
• Net sales declined ~10% to $132.0M as the company deliberately optimized advertising and enacted pricing actions against higher freight and weather headwinds, and GAAP net loss remained $1.9M for the quarter.
• The A‑Premium partnership is accelerating with an annualized revenue run rate approaching $45M (from $35M at year-end) and a near-term target of $50M, offering capital-efficient, high contribution-margin growth via extensive SKU coverage and drop-ship economics.
• JC Whitney rollout (30,000 SKUs, 7,000 live on Amazon) is scaling and funded by an $8M private placement that issued 10M shares at $0.80 to buy inventory that management expects will be accretive as it turns, but it increases share count.
• Liquidity and balance-sheet flexibility remain intact with $38M in cash, no revolver debt, and inventory of about $91M, which management says supports the growth initiatives and provides runway for the last‑mile and sourcing investments.

CarParts.com Trading Down 1.6%

Shares of PRTS stock traded down $0.10 during trading hours on Monday, hitting $5.88. The company had a trading volume of 51,930 shares, compared to its average volume of 73,544. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.67 and a quick ratio of 0.62. The stock has a market capitalization of $47.41 million, a PE ratio of -0.95 and a beta of 0.70. The company’s fifty day moving average is $7.71 and its 200 day moving average is $6.44. CarParts.com has a fifty-two week low of $3.72 and a fifty-two week high of $13.60.

Institutional Trading of CarParts.com

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Marshall Wace LLP boosted its position in shares of CarParts.com by 345.8% during the second quarter. Marshall Wace LLP now owns 68,546 shares of the specialty retailer’s stock worth $51,000 after buying an additional 53,170 shares during the period. Jane Street Group LLC acquired a new stake in shares of CarParts.com in the second quarter valued at $25,000. Vanguard Group Inc. raised its holdings in shares of CarParts.com by 2.3% in the 3rd quarter. Vanguard Group Inc. now owns 2,554,101 shares of the specialty retailer’s stock valued at $1,816,000 after buying an additional 56,857 shares during the period. Mackenzie Financial Corp lifted its stake in CarParts.com by 20.2% during the 3rd quarter. Mackenzie Financial Corp now owns 1,501,867 shares of the specialty retailer’s stock worth $1,068,000 after acquiring an additional 252,852 shares in the last quarter. Finally, Private Management Group Inc. acquired a new position in CarParts.com during the 3rd quarter worth about $65,000. Hedge funds and other institutional investors own 75.30% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on PRTS shares. Wall Street Zen upgraded CarParts.com from a “sell” rating to a “hold” rating in a research report on Sunday, April 19th. Weiss Ratings reiterated a “sell (e+)” rating on shares of CarParts.com in a report on Monday, April 20th. Finally, Royal Bank Of Canada raised their price objective on CarParts.com from $5.00 to $6.00 and gave the stock a “sector perform” rating in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $6.00.

About CarParts.com

CarParts.com, Inc operates as a leading online retailer of aftermarket automotive parts and accessories in the United States. Through its flagship website CarParts.com and affiliated e-commerce platforms, the company offers replacement components, performance upgrades, maintenance items and collision repair parts for a wide range of domestic and import vehicles. Its product catalog includes engine parts, exterior and interior accessories, lighting, braking systems and powertrain components, supported by an extensive inventory and proprietary order management system.

Founded in 1995 by George Chamoun and headquartered in Torrance, California, CarParts.com has grown from a regional auto parts supplier into a national e-commerce platform.