Pep Boys Earnings Cheat Sheet: Increased Profit Helps Beat the Street

Pep Boys Manny Moe & Jack (NYSE:PBY) reported net income above Wall Street’s expectations for the second quarter. Pep Boys Manny Moe & Jack and subsidiaries is engaged mainly in automotive repair and maintenance and in the sale of automotive tires, parts and accessories through a chain of stores.

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Pep Boys Manny Moe & Jack Earnings Cheat Sheet for the Second Quarter

Results: Net income for Pep Boys Manny Moe & Jack rose to $13.9 million (26 cents per share) vs. $10.6 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 31.6% from the year earlier quarter.

Revenue: Rose 3.5% to $522.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PBY beat the mean analyst estimate of 19 cents per share. Analysts were expecting revenue of $528.4 million.

Quoting Management: “Our profitability continues to improve as we weather the challenging macroeconomic environment of high gas prices and depressed consumer confidence,” commented President & CEO Mike Odell. “Our maintenance and repair services remain stable, allowing us to mostly offset soft tire sales. Our experience has taught us that customers can only defer their tire purchases for so long, so we have continued our aggressive ‘surround sound’ promotional activity to ensure that Pep Boys remains top of mind for tire customers.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 3.5% and in the fourth quarter of the last fiscal year, the figure rose more than threefold.

Revenue has risen the past four quarters. Revenue increased 0.7% to $513.5 million in the first quarter. The figure rose 5.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 5% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 7 cents, and in the fourth quarter of the last fiscal year, it fell short by one cent.

Competitors to Watch: Advance Auto Parts, Inc. (NYSE:AAP), O’Reilly Automotive, Inc. (NASDAQ:ORLY), AutoZone (NYSE:AZO), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), General Motors Company (NYSE:GM), Toyota Motor Corp. (NYSE:TM), Honda Motor CO., Ltd. (NYSE:HMC), Ford Motor Company (NYSE:F), CarMax (NYSE:KMX), Tesla Motors Inc (NASDAQ:TSLA), Tata Motors Limited (NYSE:TTM) and Navistar Intl. Corp. (NYSE:NAV).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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