The chart below shows how MNRO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MNRO sees a +0.81% change in stock price 10 days leading up to the earnings, and a +0.37% change 10 days following the report. On the earnings day itself, the stock moves by +1.30%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Performance Recovery: Year over year comparable store sales percentage change improved 500 basis points sequentially from Q2 of fiscal 2025, indicating a strong recovery in sales performance.
Tire Sales Momentum: Tire units were up low single digits in the 3rd quarter, driven by mid single digit growth in units during the month of December, showcasing positive momentum in tire sales.
Decreased Net Interest Expense: Net interest expense decreased to $4,200,000 compared to $5,000,000 in the same period last year, reflecting improved financial efficiency and reduced debt burden.
Strong Cash Flow Management: Generated $103,000,000 of cash from operations, including $27,000,000 of working capital reductions during the first 9 months of fiscal 2025, highlighting strong cash flow management.
Shareholder Value Commitment: Dividends distributed amounted to $26,000,000, demonstrating a commitment to returning value to shareholders despite challenging market conditions.
Negative
Sales Decline Analysis: Sales of $305,800,000 decreased 3.7% year over year, primarily driven by a 1.9% decline in comparable store sales unadjusted for days.
Gross Margin Decline: Gross margin decreased 120 basis points compared to the prior year, primarily due to higher material costs and increased self-funded promotions.
Operating Income Decline: Operating income for Q3 declined to $10,000,000 or 3.3% of sales, compared to $21,400,000 or 6.7% of sales in the prior year period.
Net Income Decline: Net income was $4,600,000, down from $12,200,000 in the same period last year, reflecting a significant decline in profitability.
Earnings Per Share Decline: Diluted earnings per share was $0.15, compared to $0.38 for the same period last year, indicating a substantial drop in earnings.
Earnings call transcript: Monro Inc. Q3 2024 misses EPS forecast, stock dips
MNRO.O
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