Monro Muffler Brake (NASDAQ:MNRO) Posts Quarterly Earnings Results

Monro Muffler Brake (NASDAQ:MNRO) announced its quarterly earnings data on Thursday. The auto parts company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.06), FiscalAI reports. The company had revenue of $283.64 million for the quarter, compared to the consensus estimate of $284.06 million. Monro Muffler Brake had a negative return on equity of 0.35% and a net margin of 0.07%. The company’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.21 EPS.

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

• Second-quarter performance weakened: comparable-store sales fell 1.8% to $283.6 million, operating income declined to $2.6 million, and the company reported a $0.05 diluted loss per share versus $0.18 of earnings last year.
• Management now expects fiscal 2027 comparable-store sales to be flat to slightly down, with gross margin flat to slightly lower and higher interest expense of $28 million to $32 million following the refinancing.
• Operational initiatives showed early traction. Among 146 stores receiving District Manager Toolkit coaching, sales grew by mid-single digits and bottom-line results improved more than 20% year over year; the toolkit is now deployed across a majority of locations.
• Marketing and merchandising efforts are supporting customer engagement, including 8% comparable-sales growth in batteries for the second consecutive quarter, year-over-year growth in maintenance services, improved September traffic, and preliminary October comparable sales that were flat.
• Monro completed a new four-year, $375 million senior secured credit facility and substantially paid down its supply-chain financing obligations, while its strategic alternatives review remains ongoing with no stated deadline or assurance of a transaction.

Monro Muffler Brake Price Performance

Shares of MNRO stock traded down $0.35 during trading hours on Friday, reaching $11.95. The company’s stock had a trading volume of 2,047,024 shares, compared to its average volume of 772,646. Monro Muffler Brake has a fifty-two week low of $11.06 and a fifty-two week high of $23.91. The firm’s 50 day simple moving average is $13.29 and its 200-day simple moving average is $16.11. The company has a quick ratio of 0.16, a current ratio of 0.48 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $373.60 million, a price-to-earnings ratio of -1,193.81, a PEG ratio of 10.25 and a beta of 1.08.

Monro Muffler Brake Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 9.4%. The ex-dividend date of this dividend was Tuesday, August 25th. Monro Muffler Brake’s dividend payout ratio (DPR) is currently -11,200.00%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on MNRO. Wells Fargo & Company cut their price objective on Monro Muffler Brake from $15.00 to $12.00 and set an “equal weight” rating for the company in a research report on Friday. Weiss Ratings lowered Monro Muffler Brake from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, September 29th. Zacks Research raised shares of Monro Muffler Brake from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Stephens cut their target price on shares of Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Finally, Wall Street Zen downgraded shares of Monro Muffler Brake from a “sell” rating to a “strong sell” rating in a report on Saturday, August 1st. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $23.00.

About Monro Muffler Brake

Monro Muffler Brake, Inc, doing business as Monro, is an automotive service and tire retailer headquartered in Rochester, New York. The company operates service centers across the United States under brands that include Monro Auto Service and Tire, Mr. Tire, Tire Choice, Car-X, and other regional names.

Monro provides replacement tires and a broad range of maintenance and repair services for passenger vehicles and light trucks. Its offerings include brake and exhaust work, wheel alignment, steering and suspension repairs, shocks and struts, oil changes, batteries, air-conditioning service, and other preventive maintenance.

Founded in 1957 as a single muffler shop in Rochester, the company expanded through organic growth and acquisitions into a nationwide automotive service network.