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Monro Stock Plummets After Q4 Earnings: The Details

Nabaparna Bhattacharya
·2 min read

  • Monro, Inc. (NASDAQ: MNRO) shares slid Thursday after reporting lackluster results in the fourth quarter of FY23.

  • The company registered a sales decline of 5.2% year-on-year in Q4 to $310.84 million, missing the consensus of $313.75 million.

  • Adjusted EPS of $0.08 missed the analyst consensus of $0.31.

  • The sales decline was due to the Company's Wholesale tire and distribution assets divestiture in the first quarter of fiscal 2023.

  • Comparable store sales increased by 4.5% versus last year. Sales from new stores increased by $2 million, primarily from recent acquisitions.

  • The gross profit inched lower by 0.8% Y/Y to $103.80 million. The margin jumped 150 basis points to 33.4%.

  • The company held $5 million in cash and equivalents as of March 31, 2023.

  • "We will continue to drive our business toward consistently delivering mid-single-digit comparable sales growth with a commitment to a balanced approach between tire and service categories that will allow us to leverage our cost structure to deliver enhanced profitability," said Mike Broderick, President and Chief Executive Officer.

  • The company expects to restore its gross margins to pre-COVID levels with double-digit operating margins over the longer term.

  • Dividend:  The company has approved a cash dividend for the first quarter of fiscal year 2024 of $0.28 per share. The cash dividend is payable on June 19, 2023.

  • Outlook: For 1Q24, revenues are expected to be $330 million to $335, versus the consensus of $341.40 million.

  • The company sees EPS of $0.36 to $0.42 versus the $0.40 consensus.

  • The gross margin rate is forecasted in the range of 35.8% to 36.2%

  • Price Action: MNRO shares are trading lower by 11.10% at $43.52 on the last check Thursday.

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This article Monro Stock Plummets After Q4 Earnings: The Details originally appeared on Benzinga.com

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