Monro (MNRO) Reports Lower-Than-Expected Revenue in Q4, Stock Drops

Revenue and Earnings Miss

Automotive services provider Monro (NASDAQ: MNRO) reported its preliminary Q4 CY2024 results, falling short of Wall Street's estimates. Revenue declined 3.7% year-over-year to $305.8 million, below analyst expectations of $310.5 million. The company's non-GAAP earnings per share (EPS) of $0.19 missed consensus estimates by 35.6%, coming in at $0.30.

Key Metrics

* Revenue: $305.8 million vs. $310.5 million analyst estimate (1.5% miss)
* Adjusted EPS: $0.19 vs. $0.30 analyst estimate (35.6% miss)
* Operating Margin: 3.3%, down from 6.7% in Q4 CY2023
* Same-Store Sales: -1.9% year-over-year (miss vs. -1.3% analyst estimate)

Management Commentary

Monro's President and CEO, Mike Broderick, noted that extreme weather in January impacted tire category sales and resulted in temporary store closures and lower traffic. However, the company expects these factors to provide a tailwind in coming months.

Financial Overview

Monro has reported declining sales growth in recent years, with revenue over the past 12 months remaining close to its levels five years ago. The company has also maintained a stable store count, indicating a focus on operational efficiency.

Same-Store Sales Performance

Same-store sales, a measure of revenue growth at existing stores, have declined over the past two years, averaging a 3.1% annual decrease. The latest quarter saw a 1.9% year-over-year drop in same-store sales.

Market Reaction

Monro's stock declined 9% to $20 immediately after the Q4 report.