Pep Boys beats expectations
The car-parts and repair company sees fortunes rise as people hold on to their clunkers.
Manny, Moe and Jack are having a great few months, seeing shares pick up about 50% since June to close Monday at $12.96. That momentum will likely continue after the company beat expectations on profit and sales.
The company reported a profit of $5.7 million, or 11 cents a share, for the third quarter. That's up from a gain of $2.1 million, or 4 cents a share, a year ago. Analysts expected 8 cents a share.
On the revenue side, Pep Boys reported $496 million for the quarter, up from $473 million a year ago. Analysts expected $487 million. Post continues after video:
"Our third-quarter results reflect sales growth, improved overall gross margin rate and operating expense leverage," said chief executive Mike Odell. The results are consistent with the company's goal of having an operating margin in the mid- to high single digits, he added.
Pep Boys can thank the economy for some of its good fortune. People are still waiting to buy new cars, turning instead to Midas (MDS), AutoZone (AZO) and other service and parts shops for help.
One analyst thinks car-repair companies will see favorable trends for at least two to five more years, Reuters reported. Only about 10.4 million new cars were sold in the United States in all of 2009, and that figure could rise to 11.5 million for this year.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'