Why is the Bapcor share price sinking on Tuesday?

man bending over to look at red arrow crashing down through the groundman bending over to look at red arrow crashing down through the ground

The Bapcor Ltd (ASX: BAP) share price is tumbling lower amid confirmation of the company’s guidance for financial year 2022.

The company restated its outlook in its latest Macquarie Group Ltd (ASX: MQG) Investor Conference presentation, published in a non-price sensitive update this morning.

At the time of writing, the Bapcor share price is $6.43, 4.46% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red today, having slumped 0.1%.

Let’s take a closer look at the vehicle parts, accessories, and services provider’s performance for the financial year so far.

Bapcor reports increased revenue for FY22 so far

The Bapcor share price is sliding amid the company’s latest trading and guidance update.

Bapcor has told the Macquarie Investor Conference its performance for financial year 2022 so far has been “strong” given the challenges it faced in the first half. It continued:

[The] fundamental drivers of the automotive aftermarket remain strong and are expected to continue to do so.

The company’s revenue for the first three quarters of financial year 2022 is 3% higher than it was at the same point of financial year 2021.

The boost has been driven by the company’s specialist wholesale segment. Its revenue has increased 8% this financial year. Meanwhile, Bapcor’s trade segment has seen its revenue rise 4% and its New Zealand segment’s revenue has grown 1%.

Those increases have counteracted a 4% revenue slip from Bapcor’s retail segment.

The company also provided a window into its performance for the quarter ended 31 March.

Over that period, Bapcor’s retail/online division outperformed, with its revenue increasing 39.7% compared to that of the third quarter of financial year 2021. Additionally, its trade/Burson segment and its specialist wholesale division’s revenue increased by 5.2% and 10.1% respectively.

Finally, Bapcor reiterated its previously given financial year 2022 guidance. It’s still aiming for its pro forma earnings to be at least in line with those of financial year 2021.

The company has stuck with that guidance since it released its most recent full year results in August.

Last financial year saw the company reporting pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) of $279.5 million and pro forma net profit after tax (NPAT) of $130.1 million.

Bapcor share price snapshot

This year so far has been tough on the Bapcor share price.

Today’s fall included, the company’s stock has slumped 9% year to date. It is also 15% lower than it was this time last year.

The post Why is the Bapcor share price sinking on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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