Monro Muffler Brake (NASDAQ:MNRO) Posts Earnings Results, Misses Expectations By $0.06 EPS

Monro Muffler Brake (NASDAQ:MNRO) announced its quarterly earnings data 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. Monro Muffler Brake had a net margin of 0.71% and a return on equity of 0.80%. The business had revenue of $283.64 million during the quarter, compared to analysts’ expectations of $284.06 million. During the same period last year, the company posted $0.21 EPS. Monro Muffler Brake’s revenue for the quarter was down 1.8% on a year-over-year basis.

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 Trading Down 14.0%

NASDAQ:MNRO traded down $2.00 during midday trading on Thursday, reaching $12.30. 2,113,518 shares of the stock traded hands, compared to its average volume of 708,589. The company has a fifty day moving average of $13.29 and a 200 day moving average of $16.15. Monro Muffler Brake has a 12 month low of $11.06 and a 12 month high of $23.91. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.16 and a current ratio of 0.49. The stock has a market capitalization of $384.50 million, a P/E ratio of 119.17, a PEG ratio of 11.92 and a beta of 1.08.

Monro Muffler Brake Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th were paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 9.1%. The ex-dividend date of this dividend was Tuesday, August 25th. Monro Muffler Brake’s payout ratio is presently 509.09%.

Analysts Set New Price Targets

MNRO has been the topic of a number of analyst reports. Wall Street Zen cut shares of Monro Muffler Brake from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 1st. Zacks Research upgraded shares of Monro Muffler Brake from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Wells Fargo & Company reduced their price objective on Monro Muffler Brake from $16.00 to $15.00 and set an “equal weight” rating on the stock in a research note on Friday, October 23rd. Stephens decreased their price objective on Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, Weiss Ratings downgraded Monro Muffler Brake from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Monro Muffler Brake presently has a consensus rating of “Hold” and a consensus target price of $24.00.

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.