U.S. Auto Parts Shows Profit – Analyst Blog

U.S. Auto Parts Network Inc. (PRTS) has shown a profit of $586,000 or 2 cents per share in the fourth quarter of 2009 in sharp contrast to a loss of $3.5 million or 12 cents per share in the year-ago quarter. With this, the company has marginally exceeded the Zacks Consensus Estimate of 1 cent per share.

 

Net sales in the quarter went up 35.5% to $45.8 million. Online and offline sales increased 36% and 31%, respectively. The rise in online sales was attributable to a 28% improvement in conversion and 9.6% growth in unique visitors.

 

For full year 2009, U.S. Auto Parts Network reported a profit of $1.3 million or 4 cents per share compared to a loss of $2.9 million or 10 cents per share in 2008. The profit was a tad higher than the Zacks Consensus Estimate of 3 cents per share. Net sales in the year rose 15% to 176.3 million.

 

U.S. Auto Parts Network had cash and cash equivalents of $26 million as of December 31, 2009, a decline from the year-ago level of $32 million. In 2009, the company had a net cash flow of $12 million from operations, a significant rise from $3 million in 2008. Meanwhile, capital expenditures increased to $9 million from $4 million in the previous year.

 

 

Over the last 30 days, out of the 3 analysts covering the stock, none has revised the estimate for full year 2010. Therefore, our long-term recommendation on the stock remains “Neutral” (Zacks #3 Rank).

 

With respect to earnings surprises, the stock has performed consistently well over the trailing four quarters. The average earnings surprise was as high as 266.67%, implying that U.S. Auto Parts Network has beaten the Zacks Consensus Estimate by the same magnitude over the last four quarters.

 

The current Zacks Consensus Estimates for the first quarter and full-year 2010 are profits of 3 cents and 12 cents, respectively. The upside potential of these estimates, essentially a proxy for future earnings surprises, is nil.

 

Based in Carson, California, U.S. Auto Parts Network Inc. operates as an online retailer of aftermarket auto parts and accessories primarily in the U.S. It offers body parts, engine parts, and performance parts and accessories to individual consumers through its network of websites and online marketplaces that primarily including partstrain.com and autopartswarehouse.com, as well as through its sales channels, which sells its products to collision repair shops and auto parts wholesale distributors.