Pep Boys Plunges 10% on 3Q Results

By EarningsFOXBusiness

Shares of Pep Boys (NYSE:PBY) tumbled 10% Tuesday morning after the auto-care retailer posted worse-than-feared sales.

Reporting after Monday’s closing bell, Pep Boys said it earned $964,000, or 2 cents a share, last quarter, compared with a loss of $6.8 million, or 13 cents a share, a year earlier. Last quarter’s results included asset impairment and severance charges.

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It’s unclear if the EPS of 2 cents is directly comparable to projections from analysts, who had called for earnings of 13 cents a share.

Revenue dipped 0.5% to $507 million, trailing the Street’s view of $522 million. Same-store sales dropped 2.8% and comparable retail sales were off 3.6%.

Pep Boys CEO Mike Odell said tire sales have improved thanks to colder weather, but he noted that “competitive pressures” continue to “challenge” sales of lower priced tires.

Shares of Philadelphia-based Pep Boys dropped 9.96% to $12.08 Tuesday morning, trimming their 2013 gain to 23%.

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