ROCHESTER, N.Y. (TheStreet) -- Monro Muffler signed agreements to buy two tire-store chains -- one in Indiana, the other in New England -- and tweaked its financial guidance for the second quarter.
The two acquisitions, the company said in a press release, will add about $60 million to its top line annually.
As for Monro's fiscal second quarter, which it will report Oct. 26, the company said it expects to earn between 47 cents and 48 cents a share, a narrower range than its previous guidance, which predicted a per-share bottom line of 43 cents to 48 cents.
That guidance tweak is pretty much in line with Wall Street expectations. The consensus target among analysts pegs Monro's second-quarter EPS at 47 cents.
In a press release issued after the opening bell Thursday, Monro said it would post same-store sales growth in the second quarter of 7%. That, once again, is at the high end of the company's previously announced range.
Monro said it spent $32 million for the New England chain, which has 12 outlets in five states that generated $53 million in revenue in 2008. It paid $2 million for the Indiana chain, which consists of four stores in the northern part of the state, near Chicago, taking in about $6 million in revenue in 2008.
The New England stores will add "slightly" to its bottom line in the first year of ownership, but will contribute between 6 cents and 8 cents a share in the following 12 months. Monro believes the Indiana stores, meanwhile, will be break even for the first twelve months after the purchase is completed.
Monro has been on a bit of a buying spree of late. So far this year, the company has acquired 76 stores with about $90 million in annual sales.
Shares of the company ended trading Thursday at $30.68, down 58 cents from the previous close.
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.