Motorcar Parts Q3 sales fall 10% on reduced orders from large customer

Motorcar Parts of America

09/02/2026 13:08

Overview

Auto parts supplier's fiscal Q3 sales impacted by reduced orders from a large customer

Company expects sales rebound in fiscal Q4 from increased ordering activity

Company repurchased $5 mln in shares during fiscal Q3

Outlook

Motorcar Parts revises fiscal 2026 sales guidance to $750 mln-$760 mln

Company expects operating income between $72 mln and $79 mln for fiscal 2026

Motorcar Parts anticipates improved gross margin in current fiscal fourth quarter

Result Drivers

CUSTOMER ORDERING - Sales impacted by reduced ordering from a large customer due to store closures and distribution consolidations, with recovery expected in Q4

COMPETITIVE LANDSCAPE - New business commitments driven by competitor bankruptcy and increased demand for replacement parts

MARGIN ACCRETION - Improved operating efficiencies and brake-related capacity utilization contributed to margin gains

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$167.70 mln
$189 mln (1 Analyst)
Q3 EPS
$0.09
Q3 Gross Margin
19.60%
Q3 Gross Profit
$32.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Motorcar Parts of America Inc is $20.00, about 52.2% above its February 6 closing price of $13.14

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwbLnYVMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)