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Monro Inc. (MNRO), a leading automotive service provider, has seen its stock price touch a 52-week low, dipping to $13.82 USD. According to InvestingPro data, the company maintains a significant 7.8% dividend yield and has consistently paid dividends for 21 consecutive years, despite current market challenges. This latest price level reflects a significant downturn for the company, which has experienced a substantial 1-year change with a decline of -53.42%. Investors are closely monitoring Monro’s performance as it navigates through a challenging market environment, which has impacted the automotive sector at large. The company’s ability to rebound from this low will be critical in the coming quarters as it seeks to regain momentum and investor confidence. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets between $18-22. Discover more insights and 12 additional ProTips for MNRO with an InvestingPro subscription, including detailed financial health scores and comprehensive Pro Research Reports.
In other recent news, Monro Inc. reported its financial results for the third quarter of fiscal year 2024, revealing a decline in both earnings per share (EPS) and revenue compared to forecasts. The company’s EPS was $0.19, missing the forecast of $0.30, while revenue reached $305.8 million, slightly below the expected $311.33 million. Monro also finalized earnout terms with American Tire Distributors, resulting in two final payments totaling approximately $6.95 million to Monro. The amendment to their agreement aims to enhance supply consistency to meet Monro’s product demands, with a revised expiration date set for January 1, 2030.
Additionally, Monro announced a leadership change with the appointment of Peter Fitzsimmons as President and CEO, following the departure of Michael Broderick. Fitzsimmons, formerly with AlixPartners, is expected to lead a performance improvement plan to drive profitability and shareholder returns. The company continues to focus on operational improvements and strategic growth initiatives, including its Comfort Drive inspection process. Monro aims to generate at least $120 million in operating cash flow for fiscal 2025, with capital expenditures projected between $25 million and $30 million. Despite challenges, Monro remains committed to restoring gross margins to pre-COVID levels and enhancing its financial performance.
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