The California-based supplier posted a net profit of $1.8 million, or 9 cents per share, down from $2.3 million in the prior-year period. Revenue for the quarter ending Dec. 31 fell nearly 10% to $167.7 million. Management attributed the shortfall to a $17 million reduction in orders from a single large customer currently undergoing store and distribution center closures.
In section Market Quotes
Motorcar Parts of America Slumps as Major Customer Cutback Hits Sales
Shares of Motorcar Parts of America tumbled 12% in pre-market trading Monday after the automotive supplier reported a sharp decline in fiscal third-quarter revenue and slashed its full-year guidance, blaming a multi-million dollar order reduction from a key retail partner.
Despite the quarterly dip, the company noted that order volumes from the affected client have already begun to rebound in the current quarter. However, the temporary disruption forced a significant downward revision of the company’s long-term financial targets.
Revised Fiscal 2026 Projections
Motorcar Parts of America now anticipates lower performance metrics for the upcoming fiscal year:- Annual sales are projected between $750 million and $760 million, down from the previous range of $800 million to $820 million.
- Operating income is expected to land between $72 million and $79 million.
- The new forecast reflects a roughly 10% decrease from prior operating income estimates.\n
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