Pep Boys Stock Soars Nearly 10 Percent
Pep Boys: Manny, Moe & Jack (NYSE: PBY) saw its stock soar nearly 10 percent after releasing a solid earnings report.
The Philadelphia-based automotive repair company reported earnings of $11.9 million or 22 cents per share in first-quarter of fiscal year 2015. That’s a sizable gain compared to $1.6 million or 3 cents per share in the first quarter one year ago.
Sales increased by $3.4 million — or 0.6 percent — climbing to $542.3 million.
Interim CEO John Sweetwood said it’s “the third consecutive quarter of positive comparable stores sales.”
“Once again, tires, commercial, fleet and digital led the way,” he said. “More importantly, we improved our operating profit by 24 percent.”
Sweetwood took over for Chief Executive Mike Odell, who resigned in September 2014.
With more than 7,000 service bays in more than 800 stores in 35 states, Pep Boys has emerged as an attractive acquisition target, according to the Wall Street Journal.
Private-equity firm Golden Gate Capital and other suitors have recently expressed interest in buying the auto-parts and services retailer, according to people familiar with the matter.
Pep Boys isn’t working with an investment bank on a sale and isn’t currently in negotiations with any of the parties, one of the people said. It isn’t clear whether the company wants to sell and a deal is far from certain.
Pep Boys stock was at $11.67 in mid-day trading on Wednesday. You may not know it, but the company is headquartered at 3111 West Allegheny Ave.
