Results: Motorcar Parts of America, Inc. Exceeded Expectations And The Consensus Lifted This Year's Outlook

Shareholders will be ecstatic, with their stake up 29% over the past week following Motorcar Parts of America, Inc.'s (NASDAQ:MPAA) latest first-quarter results. It was overall a positive result, with revenues beating expectations by 9.5% to hit US$188m. Motorcar Parts of America also reported a statutory profit of US$0.15, which was a nice improvement from the loss that the analyst were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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After the latest results, the solitary analyst covering Motorcar Parts of America are now predicting revenues of US$820.0m in 2026. If met, this would reflect a modest 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 507% to US$0.52. In the lead-up to this report, the analyst had been modelling revenues of US$800.0m and earnings per share (EPS) of US$0.37 in 2026. So it seems there's been a definite increase in optimism about Motorcar Parts of America's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Check out our latest analysis for Motorcar Parts of America

With these upgrades, we're not surprised to see that the analyst has lifted their price target 13% to US$18.00per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Motorcar Parts of America's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Motorcar Parts of America'shistorical trends, as the 7.7% annualised revenue growth to the end of 2026 is roughly in line with the 7.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So although Motorcar Parts of America is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Motorcar Parts of America's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Motorcar Parts of America. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Motorcar Parts of America has 2 warning signs (and 1 which is significant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.