Motorcar Parts of America (NASDAQ:MPAA) Posts Earnings Results, Beats Estimates By $0.09 EPS

Motorcar Parts of America (NASDAQ:MPAA) announced its quarterly earnings results on Monday. The auto parts company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.09, Zacks reports. Motorcar Parts of America had a net margin of 1.57% and a return on equity of 5.53%. The business had revenue of $212.28 million for the quarter, compared to analysts’ expectations of $175.96 million. During the same quarter last year, the firm earned ($0.04) EPS.

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

• Motorcar Parts of America reported a strong fiscal fourth quarter, with net sales up 9.9%, gross profit up 30.9%, and operating income up 29.4% year over year. Full-year net income also turned positive at $12.4 million, versus a loss in the prior year.
• The company said it has secured numerous new business commitments that should ramp through fiscal 2027, plus additional pending opportunities. Management expects these commitments, along with related organic growth, to support a revenue step-up and improved profitability.
• Management emphasized improving margins, noting fourth-quarter gross margin of 23.7% and an adjusted figure of 25.8% after certain items. They expect further benefit in fiscal 2027 from higher volume, cost reductions, tariff mitigation, and better facility utilization.
• Cash generation remained solid over the longer term, with roughly $103.8 million of operating cash flow generated over the last three years. At year-end, net bank debt was $80 million and liquidity was reported at about $133.7 million, supporting continued share repurchases and debt reduction.
• Fiscal 2027 guidance calls for net sales of $780 million to $800 million, operating income of $86 million to $91 million, and EBITDA of $95 million to $100 million. Management also said annualized sales could exceed $900 million by the end of fiscal 2027 as newer business fully ramps.

Motorcar Parts of America Trading Down 7.4%

Shares of MPAA opened at $13.20 on Wednesday. The firm’s 50 day simple moving average is $11.22 and its 200 day simple moving average is $11.71. The company has a market capitalization of $253.57 million, a P/E ratio of 24.00 and a beta of 1.21. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.46 and a quick ratio of 0.41. Motorcar Parts of America has a 1-year low of $9.29 and a 1-year high of $18.12.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Wall Street Zen cut shares of Motorcar Parts of America from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. Weiss Ratings restated a “hold (c-)” rating on shares of Motorcar Parts of America in a research note on Friday, May 8th. Cantor Fitzgerald restated an “overweight” rating on shares of Motorcar Parts of America in a research note on Tuesday. Finally, Oppenheimer began coverage on shares of Motorcar Parts of America in a research note on Friday, March 6th. They issued an “outperform” rating and a $18.00 price objective for the company. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $19.00.

Key Stories Impacting Motorcar Parts of America

Here are the key news stories impacting Motorcar Parts of America this week:

• Positive Sentiment: Motorcar Parts of America delivered fiscal Q4 results that beat expectations, with EPS of $0.42 versus estimates of $0.33 and revenue of $212.3 million versus $176.0 million expected. Earnings report and conference call
• Positive Sentiment: The company said net sales rose 9.9%, gross profit increased 30.9%, gross margin expanded to 23.7%, and operating income climbed 29.4%, signaling meaningful improvement in core profitability. Fiscal 2026 year-end results
• Positive Sentiment: Multiple reports highlighted that the stock rallied after the profit beat and management’s upbeat comments about new business opportunities and improving momentum. MarketWatch article
• Neutral Sentiment: The company updated FY2027 revenue guidance to $780 million-$800 million, which was below the consensus estimate of about $810.1 million, suggesting some caution on top-line growth.
• Neutral Sentiment: Short-interest data showed 0 reported shares, offering no meaningful trading signal from that metric.

Hedge Funds Weigh In On Motorcar Parts of America

A number of institutional investors have recently made changes to their positions in MPAA. JPMorgan Chase & Co. increased its holdings in shares of Motorcar Parts of America by 434.8% in the 4th quarter. JPMorgan Chase & Co. now owns 444,341 shares of the auto parts company’s stock worth $5,483,000 after buying an additional 361,259 shares during the last quarter. Marshall Wace LLP grew its position in Motorcar Parts of America by 96.6% in the second quarter. Marshall Wace LLP now owns 505,955 shares of the auto parts company’s stock worth $5,667,000 after acquiring an additional 248,637 shares in the last quarter. Geode Capital Management LLC grew its position in Motorcar Parts of America by 100.6% in the second quarter. Geode Capital Management LLC now owns 449,077 shares of the auto parts company’s stock worth $5,031,000 after acquiring an additional 225,225 shares in the last quarter. Invesco Ltd. grew its position in Motorcar Parts of America by 391.2% in the third quarter. Invesco Ltd. now owns 193,939 shares of the auto parts company’s stock worth $3,208,000 after acquiring an additional 154,460 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Motorcar Parts of America in the third quarter worth $2,206,000. Institutional investors own 83.48% of the company’s stock.

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.