The Q1 miss is severe but management reaffirmed full-year guidance, creating a 'show-me' setup. Watch for Q2 results to confirm whether the timing-of-orders explanation holds; a second miss would likely trigger a guidance cut and further downside. The Centric Parts brand relaunch and new business ramp in H2 are key catalysts to monitor.
Price Chart
Executive Summary
Motorcar Parts of America reported a weak fiscal Q1 2027 with net sales of $168.0M (down 10.8% YoY from $188.4M) and a GAAP net loss of $13.4M ($0.71/share) vs. net income of $3.0M ($0.15/share) a year ago. The company reaffirmed its full-year guidance of $780M-$800M in sales and $86M-$91M in operating income, attributing the Q1 miss to timing of customer orders and a competitor's bankruptcy liquidation, but the magnitude of the earnings swing is a clear negative surprise.
Key Financial Metrics
Key Facts
- Net sales fell 10.8% YoY to $168.0M from $188.4M.
- GAAP net loss of $13.4M ($0.71/share) vs. net income of $3.0M ($0.15/share) in the prior year.
- Operating income collapsed to $3.5M from $20.1M YoY.
- Gross margin contracted to 16.2% from 18.0% YoY, with an additional ~2% headwind from FX.
- Company reaffirmed full-year FY2027 guidance: net sales $780M-$800M, operating income $86M-$91M.
- Net bank debt rose to $99.7M (revolver $118.8M less cash $19.1M) from $80.0M at March 31, 2026.
- Repurchased 129,523 shares for $1.9M in the quarter; $20.1M remaining under buyback authorization.
Financial Impact
Net loss of $13.4M vs. prior-year net income of $3.0M; revenue decline of $20.3M YoY.
Risk Factors
- Customer order timing may not reverse as expected, leading to a full-year guidance cut.
- Foreign currency headwinds and transition/severance costs continue to pressure margins.
- Net bank debt increased to $99.7M, adding financial risk if the revenue recovery is delayed.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-031937 |
| Document: ef20079233_8k.htm | 0001140361-26-031937 |
| Document: 0001140361-26-031937-index-headers.html | 0001140361-26-031937 |
| Document: 0001140361-26-031937-index.html | 0001140361-26-031937 |
| Document: 0001140361-26-031937.txt | 0001140361-26-031937 |
| 8-K Data (Synthetic) | 0001140361-26-031937 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 11w ago | 8-K | $12.42 $11.71 | ▲ +5.72% | ▲ +4.80% | $10.14 (+18.36%) |
Jul 2, 2026 16w ago | 8-K | $14.67 $13.76 | ▼ −6.20% | ▼ −5.79% | $10.14 (−30.88%) |
Jun 8, 2026 20w ago | 8-K | $14.25 $14.54 | ▲ +2.04% | ▲ +0.40% | $10.14 (−28.84%) |
US Market Status
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