CarParts.com (NASDAQ:PRTS) Issues Earnings Results, Beats Estimates By $0.31 EPS

CarParts.com (NASDAQ:PRTS) released its quarterly earnings results on Thursday. The specialty retailer reported ($0.53) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.84) by $0.31, FiscalAI reports. CarParts.com had a negative return on equity of 47.19% and a negative net margin of 5.35%. The company had revenue of $129.33 million during the quarter, compared to analysts’ expectations of $124.04 million.

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

• Profitability continued to improve: Q3 adjusted EBITDA was $1.0 million, marking the third consecutive positive quarter, while GAAP net loss narrowed to $4.1 million from $10.9 million a year ago. Operating expenses fell 10% year over year to $47 million.
• Revenue returned to year-over-year growth, increasing 1.2% to $129.3 million, with gross margin rising to 33.4%. Management attributed the improvement to pricing discipline, advertising efficiency, lower freight costs, and a more capital-efficient business mix.
• Capital-light partnerships are scaling: A-Premium exited the quarter at approximately $55 million in annualized revenue, above its $50 million target, while JC Whitney reached roughly $3 million. Management remains focused on longer-term targets of $100 million for A-Premium and $7.5 million for JC Whitney.
• Customer-retention and fulfillment initiatives gained traction. CarParts+ Rewards enrolled more than 200,000 members, fee-income businesses approached a $5 million annualized run rate, and three distribution centers were providing next-day delivery as the company works toward adding Chicago and reaching 300,000 annual last-mile packages.
• Demand and external cost conditions remain challenges: Consumers remain selective with discretionary spending, freight costs are still elevated, and management is limiting advertising in highly competitive segments. The company also continues to report a GAAP loss despite positive adjusted EBITDA.

CarParts.com Trading Up 5.3%

NASDAQ PRTS traded up $0.43 on Thursday, hitting $8.62. 99,791 shares of the stock were exchanged, compared to its average volume of 25,639. The company’s 50-day moving average price is $8.16 and its two-hundred day moving average price is $7.07. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.67 and a quick ratio of 0.66. CarParts.com has a 52-week low of $3.72 and a 52-week high of $10.98. The company has a market capitalization of $69.52 million, a price-to-earnings ratio of -1.99 and a beta of 0.68.

Insiders Place Their Bets

In other CarParts.com news, COO Michael Huffaker purchased 13,250 shares of the stock in a transaction dated Thursday, September 10th. The shares were acquired at an average price of $10.06 per share, for a total transaction of $133,295.00. Following the completion of the acquisition, the chief operating officer owned 152,810 shares of the company’s stock, valued at $1,537,268.60. This represents a 9.49% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Meniane purchased 13,250 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average cost of $10.06 per share, for a total transaction of $133,295.00. Following the completion of the transaction, the chief executive officer directly owned 312,664 shares of the company’s stock, valued at $3,145,399.84. This trade represents a 4.43% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought 219,823 shares of company stock valued at $2,000,649 in the last 90 days. Corporate insiders own 6.60% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on PRTS shares. Weiss Ratings lowered shares of CarParts.com from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, October 12th. Wall Street Zen raised shares of CarParts.com to a “hold” rating in a report on Saturday, October 3rd. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $6.00.

CarParts.com Company Profile

CarParts.com, Inc is an e-commerce retailer specializing in replacement and aftermarket automotive parts and accessories. Through its online platform, the company serves owners, do-it-yourself customers, professional installers and collision-repair businesses seeking parts for cars, trucks and sport utility vehicles.

Its product offerings include collision and body components such as bumpers, fenders, hoods, mirrors and lighting, as well as mechanical parts for braking, suspension, steering, engine, transmission, exhaust and cooling systems.