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

CarParts.com (NASDAQ:PRTS) issued its quarterly earnings results on Thursday. The specialty retailer reported ($0.43) EPS for the quarter, topping analysts’ consensus estimates 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 company 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 Trading Up 16.8%

PRTS stock traded up $0.97 during midday trading on Friday, hitting $6.75. The stock had a trading volume of 70,009 shares, compared to its average volume of 20,761. The firm has a market cap of $54.67 million, a P/E ratio of -1.56 and a beta of 0.66. The company has a current ratio of 1.67, a quick ratio of 0.62 and a debt-to-equity ratio of 0.52. CarParts.com has a 1-year low of $3.72 and a 1-year high of $13.60. The business has a fifty day moving average price of $5.91 and a two-hundred day moving average price of $6.77.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on PRTS. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of CarParts.com in a research report on Friday, July 17th. Wall Street Zen upgraded CarParts.com from a “sell” rating to a “hold” rating in a research report on Sunday, April 19th. Finally, Royal Bank Of Canada increased their price target on CarParts.com from $5.00 to $6.00 and gave the company a “sector perform” rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $6.00.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in PRTS. Marshall Wace LLP lifted its stake in shares of CarParts.com by 345.8% in the 2nd quarter. Marshall Wace LLP now owns 68,546 shares of the specialty retailer’s stock valued at $51,000 after purchasing an additional 53,170 shares during the period. Jane Street Group LLC acquired a new stake in CarParts.com during the second quarter worth approximately $25,000. Vanguard Group Inc. grew its stake in CarParts.com by 2.3% during 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 during the period. Mackenzie Financial Corp increased its holdings in CarParts.com by 20.2% in the third quarter. Mackenzie Financial Corp now owns 1,501,867 shares of the specialty retailer’s stock worth $1,068,000 after purchasing an additional 252,852 shares in the last quarter. Finally, Private Management Group Inc. bought a new stake in CarParts.com in the third quarter worth approximately $65,000. 75.30% of the stock is owned by institutional investors.

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.