CarParts.com (NASDAQ:PRTS) Releases Earnings Results, Beats Expectations By $0.42 EPS

CarParts.com (NASDAQ:PRTS) announced its quarterly earnings results on Thursday. The specialty retailer reported ($0.43) earnings per share for the quarter, beating the consensus estimate of ($0.85) by $0.42, FiscalAI reports. The firm had revenue of $135.64 million during the quarter, compared to analyst estimates of $129.04 million. CarParts.com had a negative return on equity of 46.73% and a negative net margin of 5.35%.

Here are the key takeaways from CarParts.com’s conference call:

• Adjusted EBITDA turned positive at $1.8 million, improving $4.9 million year over year and marking the sixth consecutive quarter of sequential improvement. GAAP net loss narrowed to $3.2 million from $12.7 million a year earlier, supported by a 22% reduction in operating expenses.
• Net sales fell 10.7% year over year to $135.6 million as the company reduced lower-return advertising and raised prices to offset higher freight, inflation, oil, and tariff costs. Management characterized the decline as an intentional trade-off for more profitable customer acquisition.
• The A-Premium partnership reached an annualized revenue run rate approaching $50 million, with more than twice the profitability of legacy owned mechanical revenue and minimal inventory requirements. J.C. Whitney generated a $2.5 million annualized run rate on Amazon, with management expecting roughly threefold near-term growth and a longer-term path to $25 million.
• CarParts.com ended the quarter with $38 million in cash, no revolver borrowings, and inventory down to approximately $84 million from $91 million in the prior quarter. Management reiterated its goal of becoming free-cash-flow positive in 2026, with next milestones including expanding next-day delivery to all four distribution centers.

CarParts.com Stock Up 16.8%

Shares of PRTS opened at $6.75 on Friday. The stock has a 50 day moving average price of $5.91 and a 200 day moving average price of $6.77. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.62 and a current ratio of 1.67. The stock has a market capitalization of $54.67 million, a price-to-earnings ratio of -1.56 and a beta of 0.66. CarParts.com has a one year low of $3.72 and a one year high of $13.60.

Wall Street Analysts Forecast Growth

Several analysts have commented on PRTS shares. Wall Street Zen raised CarParts.com from a “sell” rating to a “hold” rating in a report on Sunday, April 19th. Royal Bank Of Canada increased their target price on CarParts.com from $5.00 to $6.00 and gave the company a “sector perform” rating in a research report on Friday, May 8th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of CarParts.com in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $6.00.

Institutional Investors Weigh In On CarParts.com

A number of large investors have recently modified their holdings of the business. Marshall Wace LLP lifted its stake in shares of CarParts.com by 345.8% in the second quarter. Marshall Wace LLP now owns 68,546 shares of the specialty retailer’s stock worth $51,000 after buying an additional 53,170 shares in the last quarter. Jane Street Group LLC purchased a new stake in CarParts.com during the 2nd quarter valued at about $25,000. Vanguard Group Inc. grew its stake in CarParts.com by 2.3% during the 3rd quarter. Vanguard Group Inc. now owns 2,554,101 shares of the specialty retailer’s stock valued at $1,816,000 after acquiring an additional 56,857 shares in the last quarter. Mackenzie Financial Corp raised its holdings in CarParts.com by 20.2% in the 3rd quarter. Mackenzie Financial Corp now owns 1,501,867 shares of the specialty retailer’s stock valued at $1,068,000 after acquiring an additional 252,852 shares during the last quarter. Finally, Private Management Group Inc. purchased a new position in CarParts.com in the 3rd quarter worth approximately $65,000. Hedge funds and other institutional investors own 75.30% of the company’s stock.

About CarParts.com

CarParts.com, Inc operates as a leading online retailer of aftermarket automotive parts and accessories in the United States. Through its flagship website CarParts.com and affiliated e-commerce platforms, the company offers replacement components, performance upgrades, maintenance items and collision repair parts for a wide range of domestic and import vehicles. Its product catalog includes engine parts, exterior and interior accessories, lighting, braking systems and powertrain components, supported by an extensive inventory and proprietary order management system.

Founded in 1995 by George Chamoun and headquartered in Torrance, California, CarParts.com has grown from a regional auto parts supplier into a national e-commerce platform.