CarParts.com (NASDAQ:PRTS) Releases Earnings Results, Beats Expectations By $0.42 EPS

CarParts.com (NASDAQ:PRTS) released its quarterly earnings data on Thursday. The specialty retailer reported ($0.43) earnings per share for the quarter, topping the consensus estimate of ($0.85) by $0.42, FiscalAI reports. CarParts.com had a negative net margin of 5.35% and a negative return on equity of 46.73%. The business had revenue of $135.64 million for the quarter, compared to analyst estimates of $129.04 million.

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

• Adjusted EBITDA turned positive at $1.8 million, improving $4.9 million year over year and marking the sixth consecutive quarter of sequential improvement. GAAP net loss narrowed to $3.2 million from $12.7 million a year earlier, supported by a 22% reduction in operating expenses.
• Net sales fell 10.7% year over year to $135.6 million as the company reduced lower-return advertising and raised prices to offset higher freight, inflation, oil, and tariff costs. Management characterized the decline as an intentional trade-off for more profitable customer acquisition.
• The A-Premium partnership reached an annualized revenue run rate approaching $50 million, with more than twice the profitability of legacy owned mechanical revenue and minimal inventory requirements. J.C. Whitney generated a $2.5 million annualized run rate on Amazon, with management expecting roughly threefold near-term growth and a longer-term path to $25 million.
• CarParts.com ended the quarter with $38 million in cash, no revolver borrowings, and inventory down to approximately $84 million from $91 million in the prior quarter. Management reiterated its goal of becoming free-cash-flow positive in 2026, with next milestones including expanding next-day delivery to all four distribution centers.

CarParts.com Price Performance

Shares of PRTS stock traded up $0.97 on Friday, hitting $6.75. 70,009 shares of the stock were exchanged, compared to its average volume of 20,761. The company has a quick ratio of 0.62, a current ratio of 1.67 and a debt-to-equity ratio of 0.52. CarParts.com has a fifty-two week low of $3.72 and a fifty-two week high of $13.60. The business has a 50-day moving average of $5.91 and a 200 day moving average of $6.77.

Institutional Investors Weigh In On CarParts.com

Several institutional investors have recently bought and sold shares of PRTS. Mackenzie Financial Corp grew its stake in shares of CarParts.com by 18.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,779,674 shares of the specialty retailer’s stock worth $880,000 after acquiring an additional 277,807 shares in the last quarter. Renaissance Technologies LLC lifted its position in shares of CarParts.com by 2.7% in the fourth quarter. Renaissance Technologies LLC now owns 1,352,700 shares of the specialty retailer’s stock worth $676,000 after purchasing an additional 35,900 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of CarParts.com by 2.3% in the third quarter. Vanguard Group Inc. now owns 2,554,101 shares of the specialty retailer’s stock worth $1,816,000 after purchasing an additional 56,857 shares in the last quarter. State Street Corp boosted its holdings in CarParts.com by 13.2% during the fourth quarter. State Street Corp now owns 237,938 shares of the specialty retailer’s stock worth $119,000 after purchasing an additional 27,800 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in CarParts.com by 14.9% in the fourth quarter. Geode Capital Management LLC now owns 649,984 shares of the specialty retailer’s stock valued at $325,000 after purchasing an additional 84,064 shares in the last quarter. Institutional investors own 75.30% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Wall Street Zen raised shares of CarParts.com from a “sell” rating to a “hold” rating in a research note on Sunday, April 19th. Royal Bank Of Canada lifted their price target on shares of CarParts.com from $5.00 to $6.00 and gave the stock a “sector perform” rating in a research report on Friday, May 8th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of CarParts.com in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus 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.