Overview

* Motorcar Parts fiscal Q2 net sales rise 6.4%, beating analyst expectations

* Company reports record gross profit for fiscal Q2 at $42.7 mln

* Company repurchased 90,114 shares for $1.4 mln, indicating strong cash flow

Outlook

* Company did not provide specific financial guidance for future quarters or fiscal year

Result Drivers

* INVENTORY REALIGNMENT - Net sales increase driven by $14.8 mln core revenue from inventory realignment at customer distribution centers

* CASH FLOW GENERATION - Generated $21.9 mln cash from operating activities, reducing net bank debt by $17.7 mln

* GROSS MARGIN IMPACT - Gross margin impacted by $3.6 mln non-cash and $698,000 one-time cash expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $221.50 $208 mln

mln (1

Analyst)

Q2 EPS -$0.11

Q2 Gross $42.70

Profit mln

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* 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 ( MPAA ) is $18.00, about 3.4% above its November 7 closing price of $17.38

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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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.)