Tuesday, The Pep Boys - Manny, Moe & Jack (PBY), an automotive aftermarket service and retail chain, reported an increase in profit for the second quarter, notwithstanding a decline in revenue, benefited by gains, as well as a better gross margin and tighter spending.
The Philadelphia, Pennsylvania based company's net earnings for the second quarter increased to $7.73 million or $0.15 per share from $5.45 million or $0.10 per share in the previous year.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the second quarter. Analysts' estimates typically exclude special items.
Results for the quarter included a $4.1 million gain from the disposition of assets and a one-time $2.2 million tax benefit from the recording of a deferred tax asset. The company also noted that the second quarter results were helped by improved gross margin rates and tight spending control.
Total revenues for the quarter declined to $488.91 million from $500.04 million last year. Analysts expected revenues of $502.51 million for the quarter.
Comparable sales for the quarter decreased 2.3%, which included a 5.2% comparable service revenue increase and a 4.0% comparable merchandise sales decrease.
For the six-month period, net earnings increased to $18.64 million or $0.36 per share from $10.12 million or $0.19 per share in the same period of the previous year.. Total revenues for the period declined to $985.40 million from $998.09 million a year ago.
PBY closed Tuesday's regular trading at $10.99, up 0.79 or 8.49%, on a volume of 2.15 million shares on the NYSE. In after hours, the stock went down $0.54 or 5.35%, trading at $9.55.
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