Monro Reports Disappointing Non-GAAP EPS and Revenue Results
May 19, 2023
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Monro ($NASDAQ:MNRO) Inc., a leading automotive service and tire retailer, has recently reported its Non-GAAP Earnings Per Share (EPS) and revenue results for the third quarter of the year. The results are far from the expectations set for the company in the markets, as Monro’s Non-GAAP EPS of $0.08 falls short of the anticipated $0.32, while its revenue of $310.8 million is lower than the projected $322.75 million. This news comes as a major disappointment to investors and analysts alike, especially since Monro’s stock has been performing quite well in recent months.
However, this disappointing third quarter earnings report may cause a shift in investor sentiments. It remains to be seen how Monro will respond to this news, and analysts are now carefully assessing if any adjustments are necessary regarding their outlook for the company.
Market Price
On Thursday, MONRO reported disappointing non-GAAP earnings per share (EPS) and revenue results. As a result, the company’s stock opened at $45.2 and closed at $45.0, representing a 7.9% drop from its previous closing price of $48.9. Analysts were expecting a more positive performance from MONRO, citing some lagging sales numbers compared to the same period last year. These results indicate that investors are not confident in the company’s ability to achieve its short-term goals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Monro. More…
| Total Revenues | Net Income | Net Margin |
| 1.34k | 46.78 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Monro. More…
| Operations | Investing | Financing |
| 217.71 | 25.21 | -239.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Monro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.8k | 1.1k | 22.33 |
Key Ratios Snapshot
Some of the financial key ratios for Monro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | -13.1% | 6.3% |
| FCF Margin | ROE | ROA |
| 13.3% | 7.5% | 3.0% |
Analysis
At GoodWhale, we’ve conducted an analysis of MONRO‘s fundamentals and can now reveal our findings. According to our Risk Rating calculations, MONRO is a medium risk investment in terms of financial and business aspects. We detected 3 risk warnings in MONRO’s income sheet, balance sheet and non financial areas, which could cause investors to be weary. To find out more about these warnings and what they could mean for your investment, be sure to register with us. More…
Peers
Monro Inc is in a fiercely competitive market, with HyUnion Holding Co Ltd, Strattec Security Corp, and Odyne Corp all vying for the top spot. Monro Inc has been striving to stay ahead by providing high-quality products and services, and by continuously innovating to meet the ever-changing demands of the market.
– HyUnion Holding Co Ltd ($SZSE:002537)
HyUnion Holding Co Ltd is a Chinese multinational conglomerate that specializes in the engineering, manufacturing, and sales of industrial equipment and services. The company has a market capitalization of 9 billion dollars as of 2023, and a return on equity of 3.11%. This indicates that the company has a strong financial position and is able to generate a reasonable return on its shareholders’ investments. The company’s strong financial performance likely stems from its diversified portfolio of products and services which includes engineering, manufacturing, and sales of industrial equipment and services. This diversification has allowed HyUnion to remain competitive in the global market and remain profitable despite a challenging economy.
– Strattec Security Corp ($NASDAQ:STRT)
Strattec Security Corp is a Milwaukee, Wisconsin-based automotive, commercial and consumer lock manufacturer. The company has an impressive market capitalization of 82.51 million dollars as of 2023, which is indicative of its strong financial standing and success in the industry. Additionally, its return on equity of 3.05% demonstrates that the company is able to efficiently utilize its resources to generate a healthy return on its investments. Strattec specializes in producing a wide range of automotive locks and keys, including the popular V.A.T.S., P.A.T.S., and Ignition Lock Cylinder systems. The company also provides aftermarket products such as locks, key blanks, and other related accessories.
– Odyne Corp ($OTCPK:ODYC)
Odyne Corp is a leading provider of advanced hybrid systems for medium and heavy-duty vehicles. With a market cap of 70.14k as of 2023, Odyne Corp is a relatively small company in terms of capitalization. Its Return on Equity (ROE) of -323.07% is an indication of the company’s financial challenges and a lack of profitability. The company has been making efforts to improve its financial performance by focusing on cost-saving measures and expanding its customer base. In addition, the company has been investing heavily in research and development to develop innovative solutions that can help reduce emissions and fuel consumption in commercial vehicles.
Summary
Monro Inc. released their Non-GAAP earnings per share of $0.08, which was lower than the expected $0.32 by analysts. Revenue of $310.8M was also lower than the forecasted $322.75M. Upon release of the earnings, the stock price for Monro dropped significantly, indicating a pessimistic outlook from investors. Analysts are now carefully considering the company’s financials as well as the future outlook for the company, to determine if and when Monro should be bought or sold.
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