Auto services provider Monro (NASDAQ: MNRO) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Monro beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $295 million, down 4.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Is Monro a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Monro’s revenue to grow 1% year on year to $296.1 million, a reversal from the 10.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Monro has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Monro’s peers in the automotive and marine retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Genuine Parts delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 0.9%, and O'Reilly reported revenues up 5.9%, in line with consensus estimates. Genuine Parts traded up 8.7% following the results while O'Reilly was also up 2.8%.
Read our full analysis of Genuine Parts’s results here and O'Reilly’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 9.5% on average over the last month. Monro is up 10.7% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $16.50).
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