Monro (MNRO) Q1 Earnings Report Preview: What To Look For

Max Juang /
2024/05/22 3:01 am EDT

Auto services provider Monro (NASDAQ:MNRO) will be reporting results tomorrow morning. Here's what to expect.

Monro missed analysts' revenue expectations by 2.2% last quarter, reporting revenues of $317.7 million, down 5.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts' gross margin estimates but a miss of analysts' earnings 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 3% year on year to $320.2 million, a reversal from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

Monro Total Revenue

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 Q1 results, giving us a hint as to what we can expect. O'Reilly delivered year-on-year revenue growth of 7.2%, meeting analysts' expectations, and Genuine Parts reported flat revenue, falling short of estimates by 1%. O'Reilly traded down 3.3% following the results while Genuine Parts was up 12.7%.

Read our full analysis of O'Reilly's results here and Genuine Parts's results here.

There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 5.2% on average over the last month. Monro is down 13.8% during the same time and is heading into earnings with an average analyst price target of $29 (compared to the current share price of $26.4).

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