Shares of Motorcar Parts of America (MPAA - Get Report) leaped Friday after the Los Angeles producer of aftermarket car parts reported adjusted fiscal fourth-quarter sales and earnings that exceeded Wall Street's expectations.
For the quarter ended March 31, Motorcar swung to a net loss of $2.8 million, or 15 cents a share, from net income of $8.4 million, or 43 cents, in the year-earlier period.
Backing out special items, Motorcar Parts reported adjusted earnings of 63 cents a share for the latest period against 54 cents a year earlier.
Net sales, reflecting increases in parts and diagnostics, advanced 7.8% to $129.1 million from $119.7 million. Adjusted sales for the most recent period were $132.7 million.
Analysts surveyed by FactSet had estimated the company would earn an adjusted 53 cents a share on $131.5 million of sales.
The stock was trading up 25.23% at $23.13. It earlier traded as high as $23.57, up 28%.
Motorcar Parts' position in the automotive and heavy-duty sectors is expanding, Selwyn Joffe, chairman, president and chief executive, said in a statement.
Its "diagnostic testing business is gaining momentum, and we are uniquely positioned as electrification gains momentum within the automotive and aerospace industries," the executive said.
For fiscal 2020, Motorcar Parts expects adjusted net sales of $552 million to $562 million, or an increase of 16 to 18 percent organically. Analysts were looking for $530.3 million.
Adjusted gross margin for fiscal 2020 is seen steady at 27%, affected by product mix, Motorcar Parts said.