NASDAQ$MPAA

Motorcar Parts of America Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record annual sales with strong demand for non-discretionary aftermarket parts and the completion of a multi-year build-out program for the company’s brake-related manufacturing operations.

Motorcar Parts of America reported a decrease in net sales for the fiscal fourth quarter, with $163.9 million compared to $168.1 million in the prior-year period. The company experienced a net loss of $332,000, or $0.02 per share, compared to a net income of $835,000, or $0.04 per diluted share, in the same period last year. Despite these challenges, the company achieved record sales for fiscal year 2022.

  • Net sales for the fiscal 2022 fourth quarter were $163.9 million compared with $168.1 million in the prior-year period, impacted by softness in January and February offset by strength in the last month of the quarter.
  • Net loss for the same period was $332,000, or $0.02 per share, compared with net income of $835,000, or $0.04 per diluted share, a year ago.
  • Gross profit for the fiscal 2022 fourth quarter was $25.8 million compared with $32.1 million a year earlier.
  • Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2023 to be between $680 million and $700 million, representing between 4.6 and 7.6 percent year-over-year growth.

Headline financials

Total Revenue

$164M

Previous: $168M-2.5%
EPS (adj)

$0.25

Previous: $0.74-66.2%
Capital Expenditures

$2.44M

Previous: $1.9M+28.4%
Free Cash Flow

-$25.1M

Previous: -$18.3M-37.4%
Net Income

-$322K

Previous: $835K-138.6%
Operating Income

$4.73M

Previous: $5.47M-13.6%
Gross Profit

$25.8M

Previous: $32.1M-19.7%
Cash & Equivalents

$23M

Previous: $15.5M+48.3%
Total Assets

$1.02B

Previous: $848M+19.8%
Stock-Based Comp

$1.83M

Previous: $1.49M+23.0%

Revenue & EPS history

MPA · Revenue · Quarterly

$164M

Q4 2022-2.5%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Motorcar Parts of America expects net sales for its fiscal year ending March 31, 2023 to be between $680 million and $700 million, representing between 4.6 and 7.6 percent year-over-year growth.

Tailwinds

  • Net sales are expected to increase between 6.8 and 9.9 percent in fiscal year 2023, excluding $13.3 million of core revenue realized in fiscal year 2022
  • Future margin expansion expected from additional price increases
  • Future margin expansion expected from operating efficiencies as the new fiscal year progresses
  • Upside opportunities are expected to be realized by increasing sales through product-line growth in each category
  • The company expects to benefit from leveraging the company’s cost discipline

Headwinds

  • Operating income is expected to be between $57 million and $61 million, before the non-cash foreign exchange impact of lease liabilities and forward contracts, the non-cash impact of revaluation of cores on customers’ shelves, and supply chain disruptions and costs related to COVID-19.
  • Global supply chain challenges and inflationary costs impacted margins.
  • Strategic inventory investments to support growth and mitigate supply chain logistics impacted cash flow for fiscal year.
  • The company estimates other non-cash items will be approximately $21 million, including core and finished goods premium amortization and share-based compensation, impacting operating income.
  • The company estimates cash expenses will be approximately $2 million for special EV-related research and development expenses, impacting operating income.

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 Q4 2022

Historical avgQ4 2022

+2.2%

Avg return

Earnings day

+2.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+34.8%

Q4 2026

Best reaction

-26.4%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+34.8%+42.1%
Q3 2026-17.5%-23.6%-20.5%
Q2 2026-26.4%-24.7%-21.9%
Q1 2026+22.6%+21.8%+29.9%
Q4 2025-0.7%+4.3%-2.0%
Q3 2025+10.6%+61.7%+86.6%
Q2 2025+15.9%+18.8%+41.8%
Q1 2025+0.3%+2.5%-2.7%
Q4 2024-3.5%+7.3%+22.3%
Q3 2024+3.8%-1.5%-11.0%
Q2 2024+4.0%+7.1%+14.6%
Q1 2024-8.2%-6.2%-15.4%
Q4 2023+15.6%+26.8%+56.9%
Q3 2023-10.2%-10.4%-32.5%
Q2 2023-12.9%-23.6%-49.9%
Q1 2023+0.4%+9.6%-1.9%
Q4 2022-6.3%-16.0%-12.6%
Q3 2022+1.3%-0.7%+3.3%
Q2 2022-1.5%-0.8%-1.4%
Q1 2022-1.5%-2.0%-16.0%
Q4 2021+3.6%-4.4%-0.4%
Q3 2021-16.3%-19.8%-7.1%
Q2 2021+22.9%+13.9%+48.6%
Q1 2021-3.3%-1.0%-8.4%
Q4 2020-1.1%-0.3%+7.7%
Q3 2020-15.9%-12.5%-25.8%
Q2 2020+8.0%+2.2%+10.5%
Q1 2020-6.0%-5.5%-14.6%
Q4 2019+11.9%+5.3%-1.1%
Q3 2019-2.6%+7.5%+1.9%
Q2 2019+6.1%+4.0%+4.3%
Q1 2019+9.7%+12.4%+13.8%
Q4 2018-7.1%-4.1%-6.3%
Q3 2018-12.5%+0.3%-11.4%
Q2 2018-2.7%-2.6%-6.6%
Q1 2018+4.9%+5.6%+1.4%
Q4 2017-6.2%-4.4%-1.5%
Q3 2017-0.3%+1.4%+2.0%
Q2 2017+12.9%+11.6%+21.2%
Q1 2017+6.3%+4.9%+0.2%
Q4 2016+10.0%+13.9%-2.2%
Q3 2016+2.9%
Q2 2016+18.4%
Q1 2016+7.8%
Q4 2015+3.7%
Q3 2015-0.7%
Q2 2015+16.9%
Q1 2015+12.4%
Q4 2014+4.7%
Q3 2014+15.2%
Q2 2014+31.9%
Q1 2014+11.1%
Q4 2013+7.0%
Q3 2013-16.2%
Q2 2013+2.9%
Q1 2013+13.5%
Q4 2010-4.5%
Q4 2012-4.5%
Q3 2011-14.7%
Q3 2012-14.7%
Q2 2012+10.3%
Q4 2011-0.5%
Q2 2011-0.5%
Q1 2011-0.5%
Q1 2012-0.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro