News Summary:
On August 17, 2026, Motorcar Parts of America Inc. (MPAA) reaffirmed its fiscal 2027 financial targets despite first-quarter sales headwinds related to order timing and competitor inventory liquidations. Management indicated business developments, including the relaunch of the Centric Parts brand and the relocation of heavy-duty operations to Mexico, are expected to drive growth in the second half of the year. The company anticipates the Centric Parts brand, acquired recently, to relaunch by the current fiscal year-end, and it aims to expand its position within brake-related product categories. Motorcar Parts also noted a strong liquidity position with approximately $112.4 million in total cash and availability as of June 30, 2026, and confirmed it is exploring strategic alternatives for its EV emulator business. The company reaffirmed its guidance, expecting net sales for the fiscal year ending March 31, 2027, to increase between 7.5% and 10.2% year over year, excluding certain nonrecurring items such as tariff pass-throughs due to reduced import tariffs and non-recurring core revenue. Earlier, on August 10, 2026, Motorcar Parts of America reported a wider-than-expected first-quarter loss and lower-than-forecast sales for fiscal 2027, causing its shares to decline 10% in premarket trading. The company recorded adjusted sales of $168.02 million, below Wall Street’s estimate of $183.39 million, and an earnings per share loss of $0.71, missing expectations for a $0.19 profit. Management attributed the Q1 net sales of $168 million to order timing. Despite the selloff, InvestingPro analysis suggested the stock might be undervalued. The company projects full fiscal year net sales between $780 million and $800 million, operating income from $86 million to $91 million, and EBITDA between $95 million and $100 million.
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