Pep Boys - Manny, Moe & Jack Hits Estimates in Solid Quarter

Pep Boys - Manny, Moe & Jack (NYSE: PBY  ) reported earnings on June 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Pep Boys - Manny, Moe & Jack met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
Pep Boys - Manny, Moe & Jack reported revenue of $536.2 million. The three analysts polled by S&P Capital IQ expected to see revenue of $532.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. Non-GAAP EPS of $0.09 for Q1 were 125% higher than the prior-year quarter's $0.04 per share. GAAP EPS of $0.07 for Q1 were 250% higher than the prior-year quarter's $0.02 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.7%, 160 basis points worse than the prior-year quarter. Operating margin was 0.7%, 110 basis points worse than the prior-year quarter. Net margin was 0.7%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $539.5 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $0.43.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 169 members out of 220 rating the stock outperform, and 51 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Pep Boys - Manny, Moe & Jack a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pep Boys - Manny, Moe & Jack is outperform, with an average price target of $12.33.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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