Monro (MNRO) Q3 Earnings Report Preview: What To Look For

Auto services provider Monro (NASDAQ:MNRO) will be reporting earnings tomorrow morning. Here’s what you need to know.

Monro met analysts’ revenue expectations last quarter, reporting revenues of $293.2 million, down 10.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ gross margin and EBITDA 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 decline 6.8% year on year to $300.1 million, a further deceleration from the 2.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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.

Looking at Monro’s peers in the auto parts retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. O'Reilly delivered year-on-year revenue growth of 3.8%, missing analysts’ expectations by 1.3%, and AutoZone reported revenues up 9%, in line with consensus estimates. O'Reilly’s stock price was unchanged after the results, while AutoZone was up 2.1%.

Read our full analysis of O'Reilly’s results here and AutoZone’s results here.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the auto parts retailer stocks have fared somewhat better, they have not been spared, with share prices down 5% on average over the last month. Monro is down 3.3% during the same time and is heading into earnings with an average analyst price target of $29.33 (compared to the current share price of $27.90).

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