NASDAQ$MNRO

Monro Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Delivered a third-quarter sales increase of 6.2% to a record $329.3 million.

Monro, Inc. reported a 6.2% increase in sales for the third quarter of fiscal year 2020, reaching a record $329.3 million. The increase was driven by new store sales, including acquisitions, but was partially offset by a comparable store sales decrease of 0.9%. Diluted earnings per share were $.56, compared to $.61 in the same period last year.

  • Sales increased by 6.2% to $329.3 million compared to the third quarter of fiscal 2019.
  • Comparable store sales decreased by 0.9%.
  • Diluted earnings per share were $.56, compared to $.61 in the third quarter of fiscal 2019.
  • The Company completed acquisitions of 27 stores in California, Nevada and Idaho.

Headline financials

Total Revenue

$329M

Previous: $310M+6.2%
EPS (adj)

$0.60

Previous: $0.61-1.6%
Comparable Store Sales

-0.9%

No prior period
Gross margin

37.8%

Previous: 38.0%-0.5%
Capital Expenditures

-$42.2M

Previous: -$30.8M-37.3%
Free Cash Flow

$82.4M

Previous: $97.8M-15.7%
Net Income

$18.9M

Previous: $20.5M-8.0%
Operating Income

$31.6M

Previous: $30.7M+2.8%
Gross Profit

$124M

Previous: $118M+5.4%
Cash & Equivalents

$8.83M

Previous: $3.58M+146.6%
Total Assets

$1.71B

Previous: $1.27B+35.1%
Stock-Based Comp

$968K

Previous: $1.09M-10.8%

Revenue & EPS history

Monro · Revenue · Quarterly

$329M

Q3 2020+6.2%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Based on current trends and completed acquisitions, the Company anticipates fiscal 2020 sales to be in the range of $1.275 billion to $1.290 billion. Comparable store sales are expected to decrease by 1% to flat. Diluted earnings per share are anticipated to be in the range of $2.25 to $2.35.

Tailwinds

  • Fiscal 2020 sales are anticipated to be in the range of $1.275 billion to $1.290 billion.
  • Company is focused on elements within the business that we can control.
  • Company made great progress on our strategic transformation this quarter.
  • Company continued rolling out our store refresh program and are pleased with the sustained results.
  • Company is well positioned to deliver sustainable, long-term value for our shareholders and are excited to capitalize on the significant opportunities ahead.

Headwinds

  • Mild weather in late November and December negatively impacted our top-line.
  • Comparable store sales guidance for fiscal 2020 has been revised to be an anticipated decrease of 1% to flat.
  • Company now anticipates its fiscal 2020 diluted earnings per share to be in the range of $2.25 to $2.35, compared to the previous range of $2.45 to $2.55.
  • Acquisitions are expected to be dilutive to diluted earnings per share in fiscal 2020.
  • These conditions have continued into January, and given these dynamics, we are adjusting our fiscal 2020 same-store-sales and earnings per diluted share guidance ranges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.1%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.1%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+31.4%

Q4 2025

Best reaction

-20.3%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+0.2%-7.0%+7.5%
Q2 2026-16.6%-16.8%+3.5%
Q1 2026-20.3%-11.6%+1.6%
Q4 2025+31.4%+22.2%+14.9%
Q3 2025-7.7%-15.6%-19.1%
Q2 2025+2.3%+3.2%+5.0%
Q1 2025+11.4%+4.5%+4.0%
Q4 2024-9.4%-8.6%-11.0%
Q3 2024+5.3%+6.9%+8.2%
Q2 2024+4.3%+0.9%+18.4%
Q1 2024-6.4%-6.5%-15.1%
Q4 2023-8.8%-11.4%-19.3%
Q3 2023+11.9%+8.3%+12.3%
Q2 2023-6.3%-1.7%-5.0%
Q1 2023+8.7%+10.9%+3.8%
Q4 2022-11.1%-1.0%-8.4%
Q3 2022-12.8%-14.1%-18.8%
Q2 2022+6.2%+7.5%+0.1%
Q1 2022-6.7%-9.5%-12.3%
Q4 2021-3.2%-5.1%-7.4%
Q3 2021+2.1%+8.0%+9.2%
Q2 2021-1.6%-4.3%+10.5%
Q1 2021-5.8%-4.4%-23.6%
Q4 2020-11.2%-11.8%-13.6%
Q3 2020-10.8%-12.4%-20.2%
Q2 2020-14.9%-12.4%-9.4%
Q1 2020+0.7%+3.5%-7.0%
Q4 2019+4.7%+2.3%+8.6%
Q3 2019+1.0%+6.1%+7.7%
Q2 2019+15.2%+14.1%+20.2%
Q1 2019-4.9%+0.3%+4.8%
Q4 2018-7.0%-1.9%+8.0%
Q3 2018-7.1%-9.7%-16.2%
Q2 2018-3.6%-1.2%-3.4%
Q1 2018+14.0%+9.4%+4.5%
Q4 2017+0.7%-2.0%-8.3%
Q3 2017-8.0%-8.8%-4.8%
Q2 2017-3.5%-6.1%-3.4%
Q1 2017-1.2%-3.0%-9.8%
Q4 2016-6.4%
Q3 2016+2.9%
Q2 2016+4.0%
Q1 2016-1.4%
Q4 2015-4.7%
Q3 2015-3.9%
Q2 2015-3.6%
Q1 2015+0.1%
Q4 2014+6.6%
Q3 2014+0.3%
Q2 2014-1.0%
Q1 2014+1.0%
Q4 2013+10.1%
Q3 2013-4.6%
Q2 2013+1.4%
Q1 2013+0.2%
Q4 2010-1.9%
Q4 2012-1.9%
Q3 2012+4.2%
Q3 2011+4.2%
Q2 2012-1.2%
Q4 2011-1.2%
Q1 2012-2.3%
Q2 2011-2.3%
Q1 2011-2.3%

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