U.S. Auto Parts Reports In-Line 4Q Despite Impact From eBay

Piper Jaffray has published a research report on U.S. Auto Parts Network PRTS after the company reported an in-line quarter despite negative impact from eBay EBAY changes. In the report, Piper Jaffray writes "We believe investors could grow increasingly positive on shares of PRTS over the next three months given comps get easier in the June quarter, but we maintain our Neutral rating based on recent changes to its eBay business. December quarter organic revenue growth of +20% y/y vs. our estimate of 15% and 25% growth in the Sept. quarter. Revenue growth would have been 26% y/y if not for changes with eBay indexing. EPS of ($0.10) lagged the Street's ($0.01), while adj. EBITDA was $4.3M, in line with our estimate. We are lowering our EBITDA estimates in CY11 by 17% and CY12 by 10% to reflect a conservative outlook for the eBay business." Piper Jaffray maintains its Neutral rating and $8 price target. U.S. Auto Parts closed yesterday at $8.12.