GUD -19.56%: the auto parts business downgraded guidance in an announcement aftermarket yesterday, sending shares to a 2 year low today. EBIT is expected to come in around $147m at the FY22 result, a 6% downgrade from the $155-160m guidance reconfirmed around 2 months ago. They blamed supply chain issues and a slow new car market, also impacted by supply. Costs have also been on the rise as inflation permeates the economy, though they have been passing on price hikes themselves to sustain margins. The legacy aftermarket parts business has been holding up though and they have benefitted from the higher inventory levels they held heading into the last quarter.
MM prefers BAP in the space
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