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CarParts.com Q3 net loss narrows as sales edge up

By Reuters News


Overview

  • US auto parts e-commerce firm's Q3 net sales rose 1.2% year-over-year

  • Net loss narrowed to $4.1 mln from $10.9 mln a year ago

  • Company posted third straight quarter of positive adjusted EBITDA


Outlook

  • CarParts.com plans to maintain disciplined investment approach as it pursues growth

  • Company expects to support revenue growth with lower inventory through drop-ship partnerships


Result Drivers

  • CONSUMER DEMAND - Co said higher net sales were mainly driven by increased consumer demand and advertising spend optimization

  • LOWER FREIGHT COSTS - Co said gross margin improvement was mainly due to lower freight costs

  • COST REDUCTIONS - Co attributed lower operating expenses to distribution center consolidation, advertising efficiency, and reduced payroll from headcount cuts


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$129.33 mln

$124.04 mln (2 Analysts)

Q3 Loss Per Share

$0.53

Q3 Net Loss

$4.11 mln

Q3 Adjusted EBITDA

$1.04 mln

Q3 Gross Profit

$43.18 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

  • Wall Street's median 12-month price target for Carparts.Com Inc is $10.85, about 32.5% above its October 28 closing price of $8.19


Reuters Recommended Reads

  • Oct 28 - Group 1 Automotive Q3 revenue falls 6.7%, misses estimates

  • Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact

  • Oct 28 - VF Corp Q2 revenue beats estimates on brand performance


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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