Why is the Bapcor share price sinking on Tuesday?

The market is seemingly disappointed by an insight into the company's recent performance.

| More on:
man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Bapcor share price is tumbling lower today, falling 4.5% to trade at $6.43 
  • The slump comes amid the release of a non-price sensitive update outlining the company's performance for financial year 2022 so far 
  • Over the first 9 months of this financial year, the company's revenue has increased 3% and it's still aiming for its pro forma earnings to be at least equal with those of last financial year 

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.

Should you invest $1,000 in Bapcor Limited right now?

Before you buy Bapcor Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bapcor Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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.

More on Consumer Staples & Discretionary Shares

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Broker watch: Are Woolworths shares a buy?

Do analysts think this supermarket giant would be a good pick for investors? Let's find out.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
Consumer Staples & Discretionary Shares

Up 31% in a year, just how much more upside does Macquarie tip for Coles shares?

Can Coles shares smash the ASX 200 returns again in the year ahead?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Woolworths shares storm higher on strong Q3 update

The supermarket giant outperformed expectations during the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Consumer Staples & Discretionary Shares

Compare the pair: Accent Group vs JB Hi-Fi shares

Which is a better option out of these two consumer discretionary shares. 

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Consumer Staples & Discretionary Shares

If I could only own 1 ASX retailer for the next 5 years it would be this one

This stock could be a great long term pick according to one leading broker.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Consumer Staples & Discretionary Shares

Coles share price drops on Q3 update

Let's see how the supermarket giant performed during the three months.

Read more »

Business man with a cigar in his mouth counting US dollars.
Consumer Staples & Discretionary Shares

Both Labor and the Coalition to crackdown on illicit tobacco trade, which ASX stocks could benefit?

Could a tobacco crackdown benefit these stocks?

Read more »

Young girl drinking milk showing off muscles.
Dividend Investing

Up 41% in 2025, how this ASX 200 dividend stock is primed for 'continuing growth'

A leading expert expects ongoing growth from this high-flying ASX 200 dividend stock.

Read more »