Overview

• US auto parts maker's fiscal Q4 net sales rose 9.9% yr/yr, returning to profit

• Gross margin improved to 23.7% from 19.9% a year earlier

• Company expects fiscal 2027 sales growth of 7.5% to 10.2% yr/yr

Outlook

• Motorcar Parts of America expects fiscal 2027 net sales of $780 mln to $800 mln

• Company expects fiscal 2027 operating income of $86 mln to $91 mln

• Motorcar Parts of America expects EBITDA of $95 mln to $100 mln for fiscal 2027

Result Drivers

• BRAKE-RELATED PRODUCT SALES - Co said strong brake-related product sales contributed to Q4 results

• INVENTORY REALIGNMENT - Q4 net sales included $19.9 mln of core revenue from inventory realignment at customer distribution centers

• OPERATING EFFICIENCIES - Co said overall operating efficiencies supported improved operating income and margins

Company press release: ID:nBw2ylQzma

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales		$212.3 mln
Q4 EPS		$0.42
Q4 Gross Margin		23.7%
Q4 Gross Profit		$50.4 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• 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 $18.00, about 70% above its June 5 closing price of $10.59

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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