Why Holley Stock Rocketed Higher Today
Shares of performance automotive parts company Holley (NYSE: HLLY) were up 23% as of 11:01 a.m. ET on Thursday after the company reported earnings results for the second quarter. Investors were pleased to see improving sales and profit trends after a rough outing in 2022. The stock has soared year to date, up 261%.
Sales fell 2.3% year over year to $175 million. Gross profit fell further, which dropped the company's profit to $13 million, down from $40.6 million in the year-ago quarter. But weak sales trends have been baked in now for over a year, especially coming out of one of the worst years for the auto industry in over a decade.
Investors were more focused on what's coming down the road. The seller of performance aftermarket auto parts reported earnings before interest, taxes, depreciation, and amortization (EBITDA) in line with management's long-term targets. Adjusted EBITDA improved slightly year over year to a margin of 21.6%, up from 20.7% last year.
Source Fool.com
