CarParts.com (NASDAQ:PRTS) Announces Quarterly Earnings Results

CarParts.com (NASDAQ:PRTS) announced its earnings results on Thursday. The specialty retailer reported ($0.53) earnings per share for the quarter, topping the consensus estimate of ($0.84) by $0.31, FiscalAI reports. The firm had revenue of $129.33 million for the quarter, compared to the consensus estimate of $124.04 million. CarParts.com had a negative net margin of 4.03% and a negative return on equity of 36.78%.

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 Price Performance

Shares of NASDAQ PRTS traded down $1.72 during trading on Friday, reaching $6.90. The company had a trading volume of 135,533 shares, compared to its average volume of 27,966. CarParts.com has a twelve month low of $3.72 and a twelve month high of $10.98. The stock has a market capitalization of $55.68 million, a PE ratio of -2.33 and a beta of 0.68. The stock has a 50-day moving average price of $8.17 and a two-hundred day moving average price of $7.08. The company has a current ratio of 1.67, a quick ratio of 0.66 and a debt-to-equity ratio of 0.54.

Insider Buying and Selling at CarParts.com

In related news, COO Michael Huffaker bought 36,580 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was purchased at an average cost of $9.64 per share, for a total transaction of $352,631.20. Following the completion of the acquisition, the chief operating officer owned 139,560 shares in the company, valued at $1,345,358.40. This trade represents a 35.52% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Barry Phelps acquired 9,900 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were purchased at an average price of $6.48 per share, with a total value of $64,152.00. Following the completion of the acquisition, the director owned 345,788 shares in the company, valued at approximately $2,240,706.24. The trade was a 2.95% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 219,823 shares of company stock worth $2,000,649. Insiders own 6.60% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on PRTS shares. Royal Bank Of Canada boosted their price objective on CarParts.com from $6.70 to $7.00 and gave the stock a “sector perform” rating in a research report on Friday. Weiss Ratings upgraded shares of CarParts.com from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday. Finally, Wall Street Zen raised CarParts.com to a “hold” rating in a research report on Saturday, October 3rd. One 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 presently has a consensus rating of “Reduce” and a consensus price target of $7.00.

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.