CarParts.com (NASDAQ:PRTS) Announces Earnings Results

CarParts.com (NASDAQ:PRTS) announced its quarterly earnings results on Thursday. The specialty retailer reported ($0.43) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.85) by $0.42, FiscalAI reports. CarParts.com had a negative net margin of 6.97% and a negative return on equity of 61.91%. The company had revenue of $135.64 million for the quarter, compared to analysts’ expectations of $129.04 million.

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 Performance

Shares of PRTS stock traded up $0.11 on Thursday, reaching $5.78. The stock had a trading volume of 44,275 shares, compared to its average volume of 18,887. The stock has a market cap of $46.82 million, a P/E ratio of -0.93 and a beta of 0.66. CarParts.com has a 1 year low of $3.72 and a 1 year high of $13.60. 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 company has a 50 day simple moving average of $5.88 and a 200 day simple moving average of $6.77.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Mackenzie Financial Corp increased its position in shares of CarParts.com by 18.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,779,674 shares of the specialty retailer’s stock valued at $880,000 after purchasing an additional 277,807 shares during the last quarter. State Street Corp boosted its holdings in shares of CarParts.com by 13.2% in the fourth quarter. State Street Corp now owns 237,938 shares of the specialty retailer’s stock worth $119,000 after buying an additional 27,800 shares during the last quarter. Renaissance Technologies LLC grew its position in CarParts.com by 2.7% during the fourth quarter. Renaissance Technologies LLC now owns 1,352,700 shares of the specialty retailer’s stock valued at $676,000 after buying an additional 35,900 shares during the period. Geode Capital Management LLC grew its position in CarParts.com by 14.9% during the fourth quarter. Geode Capital Management LLC now owns 649,984 shares of the specialty retailer’s stock valued at $325,000 after buying an additional 84,064 shares during the period. Finally, Citadel Advisors LLC grew its position in CarParts.com by 171.5% during the third quarter. Citadel Advisors LLC now owns 148,771 shares of the specialty retailer’s stock valued at $106,000 after buying an additional 93,971 shares during the period. Institutional investors own 75.30% of the company’s stock.

CarParts.com Company Profile

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.