Monro Muffler Brake (NASDAQ:MNRO) Issues Earnings Results, Beats Expectations By $0.04 EPS

Monro Muffler Brake (NASDAQ:MNRO) announced its quarterly earnings data on Wednesday. The auto parts company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.04, Briefing.com reports. Monro Muffler Brake had a positive return on equity of 2.77% and a negative net margin of 1.60%.The firm had revenue of $293.39 million during the quarter, compared to analysts’ expectations of $295.19 million. During the same period in the previous year, the business posted $0.19 EPS. The company’s quarterly revenue was down 4.0% compared to the same quarter last year.

Here are the key takeaways from Monro Muffler Brake’s conference call:

• Monro reports clear operational momentum, delivering four consecutive quarters of positive comparable store sales and a 60 basis point year-over-year expansion in gross margin to 34.9%, signaling improving profitability trends.
• Management is scaling a multi-channel marketing push—expanded digital media, CRM activation, and call center support now covering over 830 stores—which they say has driven incremental calls, sales, and gross profit dollars and will roll out further.
• The company completed a major store optimization (145 underperforming stores closed) and has monetized real estate aggressively, exiting 57 leases and selling 25 locations for cumulative proceeds of $22.8 million YTD, with the disposition process expected to largely finish in upcoming quarters.
• Q3 results were mixed—total sales fell 4% (largely from store closures) but continuing-store comps rose 1.2% and tire sales were up 5%; adjusted operating income and adjusted EPS were slightly weaker year-over-year, reflecting transition costs and reinvestment in marketing.
• Financial position and liquidity remain strong with $48 million of cash from operations YTD, net bank debt of ~$40 million, approximately $425 million of available capacity on the credit facility, maintained dividend distributions, and $25–$35 million of planned capex.

Monro Muffler Brake Stock Down 3.1%

Shares of NASDAQ:MNRO traded down $0.63 during trading on Thursday, hitting $19.42. 71,454 shares of the company’s stock traded hands, compared to its average volume of 758,314. The company has a current ratio of 0.48, a quick ratio of 0.16 and a debt-to-equity ratio of 0.44. The company has a 50-day moving average price of $20.13 and a 200-day moving average price of $17.94. Monro Muffler Brake has a 52 week low of $12.19 and a 52 week high of $21.77. The company has a market cap of $582.99 million, a price-to-earnings ratio of -28.96, a price-to-earnings-growth ratio of 2.43 and a beta of 1.01.

Monro Muffler Brake Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Tuesday, December 2nd were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Tuesday, December 2nd. This represents a $1.12 dividend on an annualized basis and a dividend yield of 5.8%. Monro Muffler Brake’s dividend payout ratio (DPR) is currently -167.16%.

Insider Buying and Selling

In related news, major shareholder Carl C. Icahn purchased 101,422 shares of Monro Muffler Brake stock in a transaction dated Friday, November 7th. The stock was bought at an average price of $17.48 per share, for a total transaction of $1,772,856.56. Following the completion of the acquisition, the insider directly owned 5,078,573 shares of the company’s stock, valued at $88,773,456.04. This represents a 2.04% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last 90 days, insiders have purchased 1,278,132 shares of company stock worth $20,815,969. Company insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Monro Muffler Brake

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MNRO. Goldman Sachs Group Inc. raised its stake in shares of Monro Muffler Brake by 11.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 688,075 shares of the auto parts company’s stock valued at $9,956,000 after purchasing an additional 68,862 shares during the period. Jones Financial Companies Lllp bought a new stake in Monro Muffler Brake in the 1st quarter valued at approximately $559,000. Jane Street Group LLC lifted its stake in Monro Muffler Brake by 85.2% in the 1st quarter. Jane Street Group LLC now owns 79,839 shares of the auto parts company’s stock valued at $1,155,000 after acquiring an additional 36,734 shares in the last quarter. Royal Bank of Canada boosted its position in Monro Muffler Brake by 139.8% during the 1st quarter. Royal Bank of Canada now owns 27,904 shares of the auto parts company’s stock worth $404,000 after acquiring an additional 16,268 shares during the last quarter. Finally, Empowered Funds LLC grew its stake in shares of Monro Muffler Brake by 5.6% during the 1st quarter. Empowered Funds LLC now owns 141,635 shares of the auto parts company’s stock worth $2,049,000 after acquiring an additional 7,464 shares in the last quarter.

Wall Street Analysts Forecast Growth

MNRO has been the subject of a number of recent research reports. Wells Fargo & Company dropped their price target on shares of Monro Muffler Brake from $18.00 to $16.00 and set an “equal weight” rating for the company in a research note on Thursday, October 30th. Weiss Ratings reiterated a “sell (d)” rating on shares of Monro Muffler Brake in a research report on Thursday, January 22nd. Finally, Wall Street Zen raised Monro Muffler Brake from a “sell” rating to a “hold” rating in a research note on Sunday, January 18th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $17.67.

About Monro Muffler Brake

Monro Muffler Brake (NASDAQ:MNRO) is a leading provider of undercar repair and maintenance services for light vehicles in the United States. The company’s core offerings include brake systems, exhaust systems, steering and suspension repairs, tire sales and service, oil and lube changes, wheel alignment, multi-point inspections, and state vehicle inspections. Monro serves both retail customers and fleet accounts, focusing on fast, reliable service and preventive maintenance to help extend vehicle life and safety.

Headquartered in Rochester, New York, Monro was originally founded in 1957 and has grown through a combination of organic expansion and strategic acquisitions.