Market Overview

Can Pep Boys Deliver Earnings Growth This Quarter? Experts & Crowd Disagree


Pep Boys-Manny Moe and Jack (NYSE: PBY) is set to announce its first quarter financial results after Monday's close.

According to Estimize, the Street anticipates flat year-over-year earnings of $0.03 per share on marginally higher revenue of $549.8 million – compared to $538.8 million reported in the same quarter last year.

The crowd is more bullish in the earnings front, but more bearish on the revenue front. Main Street is projecting consensus earnings of $0.05 (up 66 percent year-over-year) on revenue of $522.86 million, down 3 percent in relation to the first quarter of 2014.

The table above features a history of Pep Boys’ actual results and growth rates versus estimates. The current quarter is expected to be the first in the last six quarters to see earnings surge year-over-year.

However, the company has a history of widely missing estimates.

Institutional Support

Pep Boys has been among the worst performing stocks in the automotive industry for several years now. It lost 5.65 percent in the past five years, and almost 20 percent in the past 10 years.

However, several major institutional investors are still betting on the company.

The largest known shareholder is Mario Gabelli GAMCO Investors, which last disclosed ownership of 6,702,401 shares, worth almost $65 million, representing more than 12.5 percent of the company’s shares outstanding.

Another notable hedge fund betting on Pep Boys is Steven Boyd’s Armistice Capital, which declared having boosted his wage on the company by 18 percent over the last reported quarter, to 1,090,000 shares.

Posted-In: Armistice Capital Estimize Gamco Investors Mario GabelliPreviews Crowdsourcing Trading Ideas General


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