Monro (NASDAQ:MNRO) Posts Q3 Sales In Line With Estimates

In This Article:

MNRO Cover Image
Monro (NASDAQ:MNRO) Posts Q3 Sales In Line With Estimates

Auto services provider Monro (NASDAQ:MNRO) met Wall Street’s revenue expectations in Q3 CY2024, but sales fell 6.4% year on year to $301.4 million. Its non-GAAP profit of $0.17 per share was 34.6% below analysts’ consensus estimates.

Is now the time to buy Monro? Find out in our full research report.

Monro (MNRO) Q3 CY2024 Highlights:

  • Revenue: $301.4 million vs analyst estimates of $300.1 million (in line)

  • Adjusted EPS: $0.17 vs analyst expectations of $0.26 (34.6% miss)

  • Gross Margin (GAAP): 35.3%, in line with the same quarter last year

  • Operating Margin: 4.4%, down from 6.9% in the same quarter last year

  • Locations: 1,322 at quarter end, up from 1,298 in the same quarter last year

  • Same-Store Sales fell 5.8% year on year (-2.3% in the same quarter last year)

  • Market Capitalization: $801.6 million

“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. Importantly, our tire dollar and unit sales improved sequentially from the first quarter and our tire category exited the quarter with year-over-year growth in units in the month of September. Our ConfiDrive digital courtesy inspection process and our oil change offer allowed us to drive sequential improvement from the first quarter in our service category sales as well as year-over-year growth in both battery units and sales dollars in the quarter. Additionally, we improved our attachment rate for alignments, which resulted in year-over-year growth in both alignment units and sales dollars in the month of September. Encouragingly, our sales momentum from the second quarter has continued into fiscal October with our preliminary comparable store sales down only 1%, supported by improving trends in tires and all service categories, including brakes. Excluding the impact of Hurricanes Helene and Milton, our preliminary comparable store sales would have been approximately flat compared to the prior year”, said Mike Broderick, President and Chief Executive Officer.

Company Overview

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.

Auto Parts Retailer

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.

Waiting for permission
Allow microphone access to enable voice search

Try again.