Pep Boys See Broader Loss - Analyst Blog
16 Abril 2013 - 2:00PM
Zacks
Pep Boys — Manny, Moe & Jack (PBY) posted a
broader loss of $14.5 million or 27 cents per share in the fourth
quarter of fiscal 2012 ended Feb 2 compared with $4.4 million or 8
cents in the corresponding quarter of prior year as well as the
Zacks Consensus Estimate of 5 cents.
The wider loss was mainly attributable to hefty pension-related
expenses in the quarter. The company recorded a $17.8 million
pension settlement charge during the quarter, partially offset by a
$1.6 million gain from the disposition of assets.
Revenues for the fourteen weeks ended Feb 2 went up 5.1% to $530.8
million from $505.3 million for the thirteen weeks ended Jan 28,
2012. It was higher than the Zacks Consensus Estimate of $499
million. Excluding the fourteenth week of the quarter, comparable
store sales (sales for stores open at least once in a year) dipped
2.6% due to weak merchandise sales. Comparable service revenues
increased of 3.2% while comparable merchandise decreased 4.1% in
the quarter.
For fiscal 2012, Pep Boys reported a profit of $12.8 million or 24
cents per share that was narrower than $28.9 million or 54 cents in
fiscal 2011. Revenues in the year inched up 1.3% to $2.09 billion.
Excluding the fifty-third week of 2012, comparable store sales
declined 2.0% due to poor merchandise sales. Comparable service
revenues increased 1.3% while comparable merchandise revenues fell
2.9% in the year.
Pep boys had cash and cash equivalents of $59.2 million as of Feb
2, 2013 compared with $58.2 million as of Jan 28, 2012. Long-term
debt stood at $200.0 million compared with $295.1 million as of Jan
28, 2012. This translated into a long-term debt-to-capitalization
ratio of 27.1% as of Feb 2, 2013, down from 36.9% as of Jan 28,
2012.
In fiscal 2012, Pep Boys’ cash flow from operations enhanced to
$89.0 million from $73.9 million in the prior year despite a fall
in profits. The improvement was mainly attributable to a fall in
merchandise inventories and increase in accrued expenses. However,
capital expenditures decreased to $54.7 million from $74.7 million
in fiscal 2011.
Pep Boys, based in Philadelphia, Pennsylvania, 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.
Pep Boys expects to grow its market share in the service business
through continued investment, given the fact that it has completed
refinancing and settled pension liabilities in 2012. It currently
retains a Zacks Rank #3 (Hold). Shares of the company dipped 3.7%
to $11.25 on Apr 15, after the disappointing earnings results.
While we remain on the sidelines about Pep Boys, other stocks that
are worth considering in the automotive parts retailer industry
include O’Reilly Automotive Inc. (ORLY) and
CarMax Inc. (KMX). Both of them carry a Zacks Rank
#2 (Buy).
Recently, another retailer and distributor of automotive
replacement parts, AutoZone Inc. (AZO) reported a
15.2% rise in earnings per share to $4.78 in fiscal 2013-second
quarter (ended Feb 9, 2013) from $4.15 in the year-ago quarter. The
results surpassed the Zacks Consensus Estimate by 4 cents.
AutoZone’s revenues increased 2.8% to $1.86 billion in the quarter,
marginally missing the Zacks Consensus Estimate of $1.88 billion.
Domestic same-store sales (sales for stores open at least one year)
decreased 1.8% in the quarter.
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
To read this article on Zacks.com click here.
Zacks Investment Research
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024