CarParts.com Q3 net loss narrows as sales edge up

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

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

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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.)