Motorcar Parts of America Q1 sales beat estimates, raises FY forecast

Overview

• Motorcar fiscal Q1 sales rise 10.9%, beating analyst expectations

• EPS for fiscal Q1 misses analyst estimates

• Co repurchased 197,796 shares, reducing net bank debt by $7 mln

Outlook

• Company raises fiscal 2026 sales guidance to $800 mln-$820 mln

• Motorcar Parts reaffirms operating income guidance at $86 mln-$91 mln

• Company expects 5.6%-8.3% sales growth year-over-year

• Motorcar Parts sees 4.3%-10.4% operating income growth year-over-year

Result Drivers

• INDUSTRY DYNAMICS - Increasing number of vehicles on the road and aging car parc driving automotive aftermarket, per CEO Selwyn Joffe

• SUPPLY CHAIN EFFICIENCIES - Co focused on enhancing supply chain and operating efficiencies to capitalize on market position

• TARIFF MITIGATION - Efforts to reduce reliance on Chinese suppliers and offset tariff costs contributing to operational strategy

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Motorcar Parts of America Inc is $16.00, about 29.5% above its August 8 closing price of $11.28

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw7g1RlBa