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

Monro Muffler Brake (NASDAQ:MNRO) announced its quarterly earnings results on Thursday. The auto parts company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.06), FiscalAI reports. The company had revenue of $283.64 million for the quarter, compared to analyst estimates of $284.06 million. Monro Muffler Brake had a return on equity of 0.80% and a net margin of 0.71%. Monro Muffler Brake’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.21 earnings per share.

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 Stock Down 9.4%

Shares of NASDAQ:MNRO traded down $1.16 during trading hours on Friday, reaching $11.14. The stock had a trading volume of 482,081 shares, compared to its average volume of 957,014. Monro Muffler Brake has a 1 year low of $11.06 and a 1 year high of $23.91. The firm’s 50 day moving average is $13.29 and its 200-day moving average is $16.15. 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 $348.39 million, a price-to-earnings ratio of 50.78, a P/E/G ratio of 11.92 and a beta of 1.08.

Monro Muffler Brake Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th were given a $0.28 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 10.0%. Monro Muffler Brake’s dividend payout ratio is currently 509.09%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on MNRO shares. Wall Street Zen cut Monro Muffler Brake from a “sell” rating to a “strong sell” rating in a report on Saturday, August 1st. Zacks Research upgraded shares of Monro Muffler Brake from a “strong sell” rating to a “hold” rating in a report on Monday, October 5th. Wells Fargo & Company dropped their target price on shares of Monro Muffler Brake from $15.00 to $12.00 and set an “equal weight” rating for the company in a report on Friday. Stephens cut their price target on shares of Monro Muffler Brake from $20.00 to $17.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Finally, Weiss Ratings cut shares of Monro Muffler Brake from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, September 29th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $23.00.

Monro Muffler Brake Company Profile

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.