Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Pep Boys -- Manny, Moe & Jack (PBY - Snapshot Report) saw more than six-fold jump in profits to $76.7 million or $1.43 per share (excluding merger termination fees and severance costs) in the second quarter of the year ended July 28, 2012 from $11.9 million or 22 cents (excluding asset impairment charge, acquisition related expenses and benefit from the release of state tax valuation allowances) in the comparable quarter of prior year.

With this, the automotive parts supplier’s profits drove past the Zacks Consensus Estimate by a significant margin of $1.28 per share.

Revenues in the quarter grew marginally by 0.6% to $525.7 million from $522.6 million a year ago. It was in line with the Zacks Consensus Estimate. The revenue growth was mainly driven by the improvement in the company’s service business.

Comparable sales were flat with a 3.1% rise in comparable service revenues and a 0.9% decline in comparable merchandise revenues.

The company believes strong industry fundamentals driven by consistent demand for maintenance and repair services will drive its earnings. However, rising gas prices is expected to mar company’s sales.

Further, the company intends to improve its debt structure. It aims to reduce long-term debt by approximately $100 million, settle its interest rate swap, extend its maturities and reduce its overall interest expense.

Pep Boys, based in Philadelphia, supplies tires, batteries, new and remanufactured parts for vehicles, chemicals and maintenance items, fashion, electronic, and performance accessories. It also provides non-automotive merchandise such as generators, power tools and personal transportation products.

The company, which competes with O’Reilly Automotive Inc. (ORLY - Analyst Report), AutoZone Inc. (AZO - Analyst Report) and CarMax Inc. (KMX - Analyst Report), currently retains a Zacks #3 Rank, which translates to a short-term rating of Hold.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%