Pep Boys Falls 13% After Q3 Results
Pep Boys (NYSE: PBY) is down more than 13 percent in after hours trading after the firm announced its third quarter results.
The company reported a Q3 EPS of $0.02, which may not compare to the Street estimate of $0.14.
Revenue arrived at $507 million, which also may not compare to the Street estimate of $521.74 million. Sales were down one percent year-over-year.
"Our strategically important maintenance and repair service business grew in sales for the sixth consecutive quarter," Mike Odell, President and CEO, said in a company release. "As the weather has turned colder, tire sales have started to improve, with mid-level price points and branded tires leading the way. Competitive pressures, however, continue to challenge sales of lower price point tires.
"Our Road Ahead format is expanding with the 18 recently acquired Service & Tire Centers in Southern California being converted and the grand reopening of six Supercenters and five Service & Tire Centers in Tampa, Florida. The performance out of the gate of the nine new Service & Tire Centers previously opened this year in the Road Ahead format has been ahead of original projections. And while it has only been a few weeks, we are very encouraged by Tampa's results. While monitoring results, we have begun plans to convert three additional smaller markets (20 Supercenters) in the first half of 2014."
Pep Boys may be trading down now, but the company's overall performance has been quite good this year. As of Friday, December 6, company shares had risen more than 36 percent year-to-date.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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