Motorcar Parts of America, Inc. (MPAA) shares fell 18.8% to $10.67, down $2.47, after the automotive aftermarket parts supplier disclosed fiscal third-quarter 2026 results showing a revenue decline and an earnings shortfall driven by reduced orders from a major customer.
For the quarter ended December 31, 2025, MPAA reported net sales of $167.7 million, down from $186.2 million a year earlier, as a large customer curtailed orders amid store closures and distribution changes. Gross profit declined to $32.9 million, with gross margin shrinking to 19.6% from 24.1%. The company posted net income of $1.8 million, or $0.09 per diluted share, compared with $2.3 million, or $0.11 per diluted share in the prior year.
On the day of the earnings release, MPAA opened near $13.3, dropped to an intraday low around $10.55, and saw a high near $13.45, compared with its previous close.
Trading volume was notably higher than average, reflecting significant investor reaction to the weaker results and the revised outlook. Motorcar Parts also updated its fiscal 2026 guidance, lowering expected sales to a range of $750 million to $760 million and projecting operating income of $72 million to $79 million amid ongoing market headwinds.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.