Motorcar Parts of America (NASDAQ:MPAA) Announces Quarterly Earnings Results, Misses Expectations By $0.91 EPS

Motorcar Parts of America (NASDAQ:MPAA) announced its quarterly earnings data on Monday. The auto parts company reported ($0.71) EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.91), FiscalAI reports. Motorcar Parts of America had a return on equity of 5.53% and a net margin of 1.57%.The business had revenue of $168.02 million for the quarter, compared to analyst estimates of $183.00 million.

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

• Fiscal 2027 guidance was reaffirmed: net sales are expected to reach $780 million–$800 million, up 7.5%–10.2% year over year, with operating income of $86 million–$91 million and EBITDA of $95 million–$100 million. Management also expects more than $100 million of additional annualized sales by fiscal year-end, although that opportunity is excluded from current guidance due to timing uncertainty.
• Management expects the acquisition and relaunch of the Centric Parts brake brands by the end of the fiscal year to add meaningful growth, citing historical peak annualized sales of approximately $400 million and preliminary customer demand for the original product formulations.
• Long-term aftermarket demand appears favorable in management’s view, supported by an aging U.S. vehicle fleet, rising vehicle ownership, high new-car prices, and the non-discretionary nature of brake and rotating-electrical replacements. The company also expects opportunities in heavy-duty parts, Mexico and Latin America, and its diagnostic testing business.
• First-quarter net sales were $168 million and gross margin declined to 16.2% from 18.0% a year earlier, pressured by order timing, inventory-related ramp-up effects, non-cash and one-time expenses, and approximately $3.5 million of unfavorable foreign-exchange impact from the Mexican peso.
• The company used $11.3 million in operating cash flow during the quarter as it built inventory for new business, while net bank debt stood at $99.7 million and leverage was 1.26 times adjusted EBITDA. Management highlighted strong liquidity of approximately $112.4 million and repurchased $1.9 million of shares, with $20.1 million remaining under the authorization.

Motorcar Parts of America Stock Down 8.9%

Shares of Motorcar Parts of America stock opened at $12.42 on Tuesday. The firm has a market cap of $235.11 million, a price-to-earnings ratio of 22.58 and a beta of 1.16. The stock has a 50-day simple moving average of $14.02 and a 200-day simple moving average of $12.16. Motorcar Parts of America has a 52-week low of $9.29 and a 52-week high of $18.12. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.46 and a quick ratio of 0.47.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on MPAA shares. Weiss Ratings raised shares of Motorcar Parts of America from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, June 9th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Motorcar Parts of America in a research report on Tuesday, June 9th. Finally, Wall Street Zen upgraded shares of Motorcar Parts of America from a “hold” rating to a “strong-buy” rating in a research note on Saturday, June 13th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $19.00.

Insiders Place Their Bets

In related news, SVP Jamie Leigh Cook sold 14,074 shares of Motorcar Parts of America stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $15.03, for a total value of $211,532.22. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MPAA. Dimensional Fund Advisors LP grew its holdings in Motorcar Parts of America by 2.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,076,605 shares of the auto parts company’s stock valued at $13,286,000 after purchasing an additional 25,826 shares during the last quarter. Marshall Wace LLP lifted its stake in shares of 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 buying an additional 248,637 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of 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 buying an additional 225,225 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Motorcar Parts of America by 434.8% during 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 period. Finally, AQR Capital Management LLC boosted its holdings in shares of Motorcar Parts of America by 68.4% during the 4th quarter. AQR Capital Management LLC now owns 275,145 shares of the auto parts company’s stock worth $3,395,000 after buying an additional 111,756 shares during the period. Institutional investors and hedge funds 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.