Pep Boys to Buyback Shares - Analyst Blog
14 Dezembro 2012 - 3:49PM
Zacks
In a bid to enhance shareholders’ value, Pep Boys --
Manny, Moe & Jack (PBY) recently announced a share
repurchase program worth $50 million.
Pep Boys plans to fund the program with its available cash in hand
and future cash flows. It had cash and cash equivalents of $78.7
million as of October 27, 2012, up from $58.2 million as of January
28, 2012. During the first nine months of fiscal year 2012, the
company generated cash flow of $116.2 million compared with $85.1
million in the first nine months of fiscal 2011. Given its strong
balance sheet, we believe that Pep Boys is well positioned to
support this share repurchase program.
The company expects to repurchase shares either in open market or
through negotiated transactions. No particular time limit and price
target was provided for the completion of the program.
Pep Boys reported a significant increase in its profit (excluding
debt refinancing expense of $11.2 million and an asset impairment
charge of $8.8 million) to $13.2 million or 25 cents per share in
the third quarter of the year ended October 27, 2012, from $7
million or 13 cents per share in the comparable quarter of the
prior fiscal year. The earnings per share surpassed the Zacks
Consensus Estimate by 8 cents.
The company’s revenues for the quarter decreased 2.4% to $509.6
million from $522.2 million a year ago. It missed the Zacks
Consensus Estimate of $532 million.
Pep Boys, based in Philadelphia, supplies tires, batteries, new and
remanufactured parts for vehicles, chemicals and maintenance items,
fashion, electronic, and performance accessories. It also provides
non-automotive merchandise such as generators, power tools and
personal transportation products.
The company, which competes with O’Reilly Automotive
Inc. (ORLY), AutoZone Inc. (AZO) and
CarMax Inc. (KMX), currently retains a Zacks #4
Rank, which translates into a short-term (1 to 3 months) Sell
rating.
AUTOZONE INC (AZO): Free Stock Analysis Report
CARMAX GP (CC) (KMX): Free Stock Analysis Report
O REILLY AUTO (ORLY): Free Stock Analysis Report
PEP BOYS M M &J (PBY): Free Stock Analysis Report
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