Pep Boys - Manny, Moe & Jack
The 10-second takeaway
For the quarter ended April 28 (Q1), Pep Boys - Manny, Moe & Jack met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Pep Boys - Manny, Moe & Jack booked revenue of $524.6 million. The two analysts polled by S&P Capital IQ expected revenue of $524.7 million on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $513.5 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 $0.04. The two earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS of $0.02 for Q1 were 91% lower than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.3%, 200 basis points worse than the prior-year quarter. Operating margin was 1.5%, 360 basis points worse than the prior-year quarter. Net margin was 0.2%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $538.6 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $0.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 171 members out of 219 rating the stock outperform, and 48 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Pep Boys - Manny, Moe & Jack a green thumbs-up, and 13 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 underperform, with an average price target of $15.00.
While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is Pep Boys - Manny, Moe & Jack the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add Pep Boys - Manny, Moe & Jack to My Watchlist.
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.