Toronto, Ontario -- North America’s automotive aftermarket names are releasing third quarter numbers and the market is reacting — sharply in some cases.
Parts distributors, refinishing suppliers, dealership groups and collision chains all reported last week, offering a clear read on where the real economy of car repair is right now. Below is this week’s rundown of five notable releases and the share price reactions that followed.
Paint Pops Profits
LKQ is a major Chicago-based distributor of aftermarket collision parts. third quarter revenue reached US$3.499 billion ($4.864 billion), up 1.3 percent year over year. Cash returned to shareholders totalled US$118 million ($164 million) split between US$40 million ($55.6 million) in buybacks and US$78 million ($108.4 million) in dividends. North American wholesale parts revenue held steady despite softer collision frequency. The company closed the sale of its self service division in the period. Shares moved from US$28.68 ($39.88) to US$30.45 ($42.33) after the results, a gain of about six percent.
Axalta Adds Altitude
Axalta is a Philadelphia-based paints and coatings maker with a large refinish segment. third quarter net sales came in at about US$1.3 billion ($1.807 billion). Adjusted EBITDA reached US$294 million ($408.66 million) for a 22.8 percent margin. The company repurchased US$100 million ($139 million) of shares during the period. Industrial volumes improved and refinish held firm. Shares moved from US$26.39 ($36.69) to US$28.05 ($39.02) after the earnings, a gain of more than six percent.
Dealers Defy Drag
Group 1 Automotive is a Houston-based public auto retailer with service departments across the U.S. and U.K. third quarter revenue reached US$5.8 billion ($8.062 billion) rising 10.8 percent year over year. Adjusted diluted earnings per share landed at US$10.45. The results included a non cash impairment tied to its U.K. unit. U.S. service and parts operations continued to deliver consistent growth. Shares moved from US$386.31 ($536.10) to US$391.76 ($543.95) after the results, a gain of about 1.4 percent.
Boyd Boosts Bounce
Boyd Group Services is a Winnipeg-based collision consolidator operating Boyd and Gerber. preliminary third quarter revenue guidance sits between US$787 million and US$792 million ($1.094 billion to $1.101 billion) up about five percent. Same store sales growth is expected between two and 2.5 percent. Adjusted EBITDA margin is guided to 12.3 to 12.5 percent versus 10.7 percent a year earlier. The company also priced $525 million of senior unsecured notes at 5.50 percent due 2030. Shares moved from $207.83 to $224.67 after the announcement which is a gain of just over eight percent.
Standard Slips South
Standard Motor Products is a New York-based maker and distributor of automotive replacement parts for engine management and HVAC. third quarter sales reached US$498.8 million ($693.4 million) versus US$399.3 million ($554.0 million) a year earlier. Diluted earnings per share rose to US$1.32 from US$1.20. Temperature control and engine management both grew. Operating margin improved on cost actions and throughput. Shares moved from US$39.05 ($54.28) to US$37.28 ($51.83) after the release which is a decline of about 4.5 percent
