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Monday, May 29, 2023

Motorcar Parts’ Quarter Beats Expectations

Shares of Motorcar Parts of America Inc. rose nearly 15 percent on Monday after the manufacturer and distributor of automotive aftermarket parts reported a better-than-expected fiscal third quarter.

The Torrance company reported net income of $1.1 million (8 cents a share), 33 percent higher than in the same period a year earlier. Revenue rose 29 percent to $65.6 million.

Excluding the impact of stock warrant expenses and a write-off, adjusted profit was 39 cents a share. Analysts surveyed by Capital IQ expected adjusted profit of 26 cents on revenue of $62.7 million.

Chief Executive Selwyn Joffe said the company benefitted both from a continuing trend of drivers replacing their aging vehicles less often and added wear-and-tear on cars due to extreme weather conditions in recent months.

“We’re well positioned in both the do-it-for-me and the do-it-yourself market,” Joffe said during a conference call with analysts.

Shares closed up $3.16, or 14.7 percent, to $24.65 on the Nasdaq.

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