NEW YORK ( TheStreet) - Today will likely be a difficult trading day for auto-repair company Pep Boys - Manny, Moe & Jack (PBY), which put up worse-than-expected third-quarter numbers following yesterday's market close.
Revenue, expected to be $540 million, came in at $525.7 million, and earnings per share of 10 cents were below the 19 cent consensus estimate. Shares fell 7% in after-hours trading.
It's been a difficult couple of years for this company, which at times has appeared to be attractive as a value play. Pep Boys exchanged hands for more than $35 a share back in 1996, and it has been a roller-coaster ride ever since.
The company long paid cash dividends, but that ended in 2012. The same year, the company was set to be acquired by Gores Group for $15 a share, which I believed at the time to be a steal for Gores. But the following May, Gores got cold feet; scared by Pep Boys operating performance, and walked away from the deal. In turn, Pep Boys walked away from that broken deal with a $50 million breakup fee, which allowed it to reduce debt to the $200 million range where it now stands.
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