Why Shares of Motorcar Parts of America, Inc. Jumped

Is this meaningful? Or just another movement?

Feb 10, 2014 at 5:13PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our thesis.

What: Shares of Motorcar Parts of America (NASDAQ:MPAA) were shifting into high gear today, finishing up 15% after a strong third-quarter earnings report.

So what: The aftermarket auto-parts manufacturer breezed past estimates as earnings per share hit $0.39 a share against expectations of $0.26, while revenues jumped 29% to $65.6 million, beating expectations of $62.7 million. CEO Selwyn Joffe said, "Results for the quarter benefited from continued strong industry dynamics," and he was positive about the future, adding, "We anticipate this momentum will continue, supported by an aging vehicle population and recent extreme weather conditions throughout the nation."

Now what: Motorcar did not provide guidance, but Joffe's statement should be reassuring to investors. Aftermarket retailers such as Advance Auto Parts and O'Reilly Auto Parts also reported strong quarters, and the nation's aging vehicle inventory will take at least a few years to cycle through, meaning we could see more reports like this for Motorcar. Whether or not you're a believer in the economic recovery, Motorcar seems like a good way to play it for the near future.

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Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

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Jun 12, 2015 at 5:01PM

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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