Motorcar Parts of America (MPAA) Reports Q4 Revenues Miss

Motorcar Parts of America (NASDAQ: MPAA) reported Q4 EPS of ($0.43), $0.98 worse than the analyst estimate of $0.55. Revenue for the quarter came in at $150.7 million versus the consensus estimate of $151.35 million.

“Notwithstanding the global pandemic, which began to impact the automotive aftermarket in mid-March, we achieved record sales and generated strong cash flow from operations. While the sharp decline in the value of the Mexican peso US dollar exchange rate resulted in large non-cash expenses, the underlying operating results for the company are strong,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

FISCAL 2021 OUTLOOK

After record sales and a strong end to fiscal 2020, April brought a sharp decrease in demand, as home sheltering took effect across the country. The company implemented a variety of safety and cost-savings initiatives to proactively address the crisis, while at the same time remained prepared for an anticipated resumption of demand. Industry reports indicate that sales of hard parts have increased substantially over the past 45 days, indicating that we may have experienced the low point.

Joffe noted it is encouraging that the company’s sales improved significantly in May, and June is trending nicely.

“Our industry has proven to be resilient and we remain committed to our strategic plans for growth and profitability focusing on excellent returns to our shareholders. However, the company believes it is prudent at this time to not provide annual sales and gross margin guidance.

“Clearly the past few months have been a challenging period for our company, our employees and their families. We are tremendously appreciative of everyone’s contributions and the dedicated focus on providing essential automotive aftermarket products under extraordinary circumstances. Our employees have exhibited enormous bravery, commitment, and innovation to ensure the safety of our entire team. They have accomplished this without compromising our commitment to our customers that they receive their orders with the quality and promptness they expect from MPA. These people are true heroes and we will continue with our utmost commitment and social responsibility to this team, their families, and our customers.

“We are an essential supplier in the $125 billion hard parts industry and well-positioned for growth in the aftermarket industry, and especially proud to play an important role in keeping vehicles of all kinds on the road,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America.

For earnings history and earnings-related data on Motorcar Parts of America (MPAA) click here.

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