Pep Boys Negative

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Pep Boys (NYS: PBY) reported earnings on April 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Pep Boys met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank to a loss.


Margins contracted across the board.

Revenue details
Pep Boys tallied revenue of $505.3 million. The three analysts polled by S&P Capital IQ looked for revenue of $507.2 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $477.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were -$0.08 for Q4 against $0.16 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.1%, 370 basis points worse than the prior-year quarter. Operating margin was -0.4%, 390 basis points worse than the prior-year quarter. Net margin was -0.9%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $551.9 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $0.91.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members out of 210 rating the stock outperform, and 46 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Pep Boys a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pep Boys is hold, with an average price target of $14.75.

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At the time this article was published 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 ofMotley 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.

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