Pep Boys Earnings Cheat Sheet: Profit Increases Again

Pep Boys Manny Moe & Jack (NYSE:PBY) reported its results for the third quarter. Pep Boys Manny Moe & Jack 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 Third Quarter

Results: Net income for Pep Boys Manny Moe & Jack rose to $7 million (13 cents per share) vs. $5.7 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 22.6% from the year earlier quarter.

Revenue: Rose 5.2% to $522.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PBY fell in line with the mean analyst estimate of 13 cents per share. Analysts were expecting revenue of $523.2 million.

Quoting Management: “Our service business started to rebound during the third quarter,” commented President & CEO Mike Odell. “Our ‘surround sound’ marketing effort coupled with lower gas prices and pent-up demand drove strong tire sales in the last month of the quarter, which have continued into the fourth quarter. While our retail business remained soft in a challenging environment for consumers, our service business results and margin enhancement initiatives resulted in our 11th quarter of improved profitability, on a year-over-year basis.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 31.6% and in the first quarter, the figure rose 3.5%.

Revenue has risen the past four quarters. Revenue increased 3.5% to $522.6 million in the second quarter. The figure rose 0.7% in the first quarter from the year earlier and climbed 5.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 22 cents versus a mean estimate of net income of 19 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 13 cents per share to 12 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is now 68 cents per share, down from 70 cents sixty days ago.

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).

Stock Performance: Shares of PBY were up 1.1% from the previous close.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)