Motorcar Parts of America Inc (NASDAQ:MPAA) shares surged 17% on Tuesday after the company reported record sales for its fiscal 2023 fourth quarter and full year due to demand for its spares as consumers put off buying new cars.
The manufacturer and distributor of automotive aftermarket parts attributed the growth to solid demand for parts including its rotating electrical and emerging brake-related products.
Net sales for the three months to March 31, 2023, rose 19% to $194.7 million as it benefitted from increasing product demand for the spring and summer seasons and recently implemented price increases.
Sales surpassed the Zacks Consensus Estimate by about 4%.
It reported diluted net income per share of $0.07, up from a $0.02 loss in 4Q 2022.
For the full year, net sales rose 5% to $683.1 million. However, it swung to a loss of $0.22 per share from income of $0.38 in FY22.
“Fiscal 2023 record sales benefited from the strength of our products and excellent customer relationships, enhanced by being a critical supplier of non-discretionary automotive parts,” the company’s chairman, president and CEO Selwyn Joffe said in a statement.
“We expect our position will gain further momentum with favorable industry data indicating that consumers are continuing to defer new car purchases, with the average vehicle age at a new record high of 12.5 years.”
The company has guided for fiscal 2024 sales to be 5.4% to 8.3% higher at between $720 million to $740 million.
Contact the author at stephen.gunnion@proactiveinvestors.com