The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Pep Boys met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Pep Boys tallied revenue of $505.3 million. The three analysts polled by S&P Capital IQ looked for revenue of $507.2 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $477.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were -$0.08 for Q4 against $0.16 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.1%, 370 basis points worse than the prior-year quarter. Operating margin was -0.4%, 390 basis points worse than the prior-year quarter. Net margin was -0.9%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $551.9 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $0.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members out of 210 rating the stock outperform, and 46 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Pep Boys a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pep Boys is hold, with an average price target of $14.75.
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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. 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.