U.S. Auto Parts’ Stock Burns Rubber

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Investors rallied at positive earnings news from Carson’s U.S. Auto Parts Network Inc. on Monday as stock prices soared nearly 21 percent.

For its third quarter that ended Oct. 3, the online seller of aftermarket automotive parts reported net income of $353,000 (less than 1 cent), compared to a $2 million net loss (- 8 cents) from the year-ago period. Sales rose 4 percent to $70.6 million.

U.S. Auto Parts attributed the increase in sales largely to a 10 percent rise in online marketplace sales, which rose to $15.8 million, and a 2 percent growth in e-commerce sales to $47.5 million.

The aftermarket seller of items such as automotive body and engine parts and performance parts and accessories also said it added more than 2,100 items to its private label line over the quarter.

“Our third quarter was highlighted by the continued strength in our private label business, which realized double-digit, year-over-year growth for the seventh consecutive quarter,” said Chief Executive Shane Evangelist in a statement. “The higher revenue mix of private label sales, coupled with enhanced pricing initiatives, drove a triple-digit increase in adjusted EBITDA to $2.8 million, and the first time we have had positive net income in the third quarter since 2009.”

The stock closed at $2.48 a share.

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