Monro Muffler Brake (NASDAQ:MNRO – Get Free Report) released its earnings results on Thursday. The auto parts company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.06), FiscalAI reports. The business had revenue of $283.64 million during the quarter, compared to analyst estimates of $284.06 million. Monro Muffler Brake had a net margin of 0.71% and a return on equity of 0.80%. The business’s quarterly revenue was down 1.8% compared to the same quarter last year. During the same period last year, the business earned $0.21 EPS.
Here are the key takeaways from Monro Muffler Brake’s conference call:
- Second-quarter performance weakened: comparable-store sales fell 1.8% to $283.6 million, operating income declined to $2.6 million, and the company reported a $0.05 diluted loss per share versus $0.18 of earnings last year.
- Management now expects fiscal 2027 comparable-store sales to be flat to slightly down, with gross margin flat to slightly lower and higher interest expense of $28 million to $32 million following the refinancing.
- Operational initiatives showed early traction. Among 146 stores receiving District Manager Toolkit coaching, sales grew by mid-single digits and bottom-line results improved more than 20% year over year; the toolkit is now deployed across a majority of locations.
- Marketing and merchandising efforts are supporting customer engagement, including 8% comparable-sales growth in batteries for the second consecutive quarter, year-over-year growth in maintenance services, improved September traffic, and preliminary October comparable sales that were flat.
- Monro completed a new four-year, $375 million senior secured credit facility and substantially paid down its supply-chain financing obligations, while its strategic alternatives review remains ongoing with no stated deadline or assurance of a transaction.
Monro Muffler Brake Stock Performance
Shares of MNRO stock traded down $1.52 during mid-day trading on Thursday, reaching $12.78. The stock had a trading volume of 1,343,964 shares, compared to its average volume of 955,322. The firm’s 50 day simple moving average is $13.29 and its 200 day simple moving average is $16.19. The company has a quick ratio of 0.16, a current ratio of 0.49 and a debt-to-equity ratio of 0.50. The firm has a market cap of $399.40 million, a PE ratio of 57.96, a P/E/G ratio of 11.02 and a beta of 1.08. Monro Muffler Brake has a one year low of $11.06 and a one year high of $23.91.
Monro Muffler Brake Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th were issued a $0.28 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $1.12 annualized dividend and a yield of 8.8%. Monro Muffler Brake’s dividend payout ratio is 509.09%.
Wall Street Analyst Weigh In
Several equities research analysts have recently weighed in on the company. Zacks Research raised Monro Muffler Brake from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Wall Street Zen lowered shares of Monro Muffler Brake from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 1st. Weiss Ratings cut shares of Monro Muffler Brake from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, September 29th. Wells Fargo & Company reduced their price target on shares of Monro Muffler Brake from $16.00 to $15.00 and set an “equal weight” rating for the company in a report on Friday, October 23rd. Finally, Stephens reduced their price target on shares of Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Monro Muffler Brake currently has a consensus rating of “Hold” and an average target price of $24.00.
Check Out Our Latest Report on Monro Muffler Brake
About Monro Muffler Brake
Monro Muffler Brake, Inc, doing business as Monro, is an automotive service and tire retailer headquartered in Rochester, New York. The company operates service centers across the United States under brands that include Monro Auto Service and Tire, Mr. Tire, Tire Choice, Car-X, and other regional names.
Monro provides replacement tires and a broad range of maintenance and repair services for passenger vehicles and light trucks. Its offerings include brake and exhaust work, wheel alignment, steering and suspension repairs, shocks and struts, oil changes, batteries, air-conditioning service, and other preventive maintenance.
Founded in 1957 as a single muffler shop in Rochester, the company expanded through organic growth and acquisitions into a nationwide automotive service network.
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