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

Motorcar Parts of America (NASDAQ:MPAA) announced its quarterly earnings data on Monday. The auto parts company reported ($0.03) EPS for the quarter, missing the consensus estimate of $0.39 by ($0.42), FiscalAI reports. The firm had revenue of $169.22 million for the quarter, compared to analyst estimates of $201.22 million. Motorcar Parts of America had a negative net margin of 0.53% and a negative return on equity of 0.57%.

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

• The company cut fiscal 2027 sales guidance to $715 million–$740 million from $780 million–$800 million, citing delayed customer orders, softer demand and the timing of new-program launches. It expects second-half sales to improve, but customer ordering patterns remain uncertain.
• MPA said it has secured nearly $60 million in annualized new-business awards, with shipments underway and all programs expected to launch in the second half. Management also cited a separate potential $25 million in annualized sales from advanced discussions, though some of that business may not begin until next fiscal year.
• Reported second-quarter gross margin was 24.2%, but it included one-time benefits, including approximately $11.1 million in tariff refunds; excluding specified items and foreign-exchange effects, margin was about 22.7%. Management expects higher sales, improved capacity utilization and cost reductions to support margins.
• MPA used about $4.1 million in operating cash during the quarter, while net bank debt was $105.8 million and total cash plus revolver availability was approximately $104.8 million. The company reported a 1.5x net-debt-to-adjusted-EBITDA ratio and said it continues to expect positive cash flow.
• Management highlighted further growth opportunities from expanding its brake platform, the Centric Parts relaunch, customer expansion in Mexico and Canada, and its diagnostic-testing business. These are potential growth drivers, and the company said Centric sales are not included in its current growth estimates.

Motorcar Parts of America Trading Down 2.8%

MPAA traded down $0.22 during midday trading on Tuesday, hitting $7.50. 24,286 shares of the company were exchanged, compared to its average volume of 114,962. The firm’s 50 day moving average price is $10.60 and its 200-day moving average price is $11.74. Motorcar Parts of America has a 1-year low of $7.34 and a 1-year high of $16.43. The firm has a market capitalization of $141.97 million, a P/E ratio of -24.19 and a beta of 1.25. The company has a quick ratio of 0.39, a current ratio of 1.44 and a debt-to-equity ratio of 0.18.

Key Headlines Impacting Motorcar Parts of America

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

• Positive Sentiment: Motorcar Parts cited $60 million in new annualized awards, which could support future sales. Fiscal 2027 sales outlook and new awards
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $18 from $20 but maintained an “overweight” rating. The target implies substantial upside from the cited $7.72 price, though the reduction reflects a more cautious valuation view. Cantor Fitzgerald recommendations
• Negative Sentiment: Fiscal Q2 2027 results fell short: the company reported a $0.03-per-share loss, versus analyst expectations for a profit, and revenue of $169.22 million versus estimates of $201.22 million. The loss also compares with earnings of $0.17 per share a year earlier. Q2 results and estimate comparison
• Negative Sentiment: Fiscal 2027 revenue guidance of $715 million to $740 million is below the $787.8 million consensus estimate, pointing to a weaker sales outlook than investors had expected. Fiscal 2027 revenue guidance

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MPAA. Wall Street Zen cut shares of Motorcar Parts of America from a “strong-buy” rating to a “hold” rating in a research note on Saturday, August 15th. Zacks Research cut Motorcar Parts of America from a “hold” rating to a “strong sell” rating in a research note on Monday, October 12th. Weiss Ratings downgraded Motorcar Parts of America from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, August 25th. Cantor Fitzgerald reduced their price objective on Motorcar Parts of America from $20.00 to $18.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Raymond James Financial set a $16.00 price objective on Motorcar Parts of America in a research report on Tuesday, August 18th. Two investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $18.00.

About Motorcar Parts of America

Motorcar Parts of America, Inc is an automotive parts manufacturer, remanufacturer and distributor serving the North American aftermarket. The company supplies replacement components for passenger vehicles, light trucks and other applications through automotive retailers, distributors, warehouse distributors and e-commerce channels.

Its product portfolio includes rotating electrical products such as alternators and starters, as well as wheel hub assemblies and a range of braking products.