Q3 Rundown: Monro (NASDAQ:MNRO) Vs Other Auto Parts Retailer Stocks

In This Article:

MNRO Cover Image
Q3 Rundown: Monro (NASDAQ:MNRO) Vs Other Auto Parts Retailer Stocks

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the auto parts retailer stocks, including Monro (NASDAQ:MNRO) and its peers.

Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.

The 5 auto parts retailer stocks we track reported a softer Q3. As a group, revenues were in line with analysts’ consensus estimates.

While some auto parts retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.

Slowest Q3: Monro (NASDAQ:MNRO)

Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Monro reported revenues of $301.4 million, down 6.4% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.

“We drove sequential improvement in our year-over-year comparable store sales percentage change from the first quarter as well as a significant acceleration in our comp trends as the second quarter progressed.”, said Mike Broderick, President and Chief Executive Officer.

Monro Total Revenue
Monro Total Revenue

Monro achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 6.3% since reporting and currently trades at $28.47.

Read our full report on Monro here, it’s free.

Best Q3: O'Reilly (NASDAQ:ORLY)

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

O'Reilly reported revenues of $4.36 billion, up 3.8% year on year, falling short of analysts’ expectations by 1.3%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.

O'Reilly Total Revenue
O'Reilly Total Revenue

O'Reilly scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $1,215.

Waiting for permission
Allow microphone access to enable voice search

Try again.