Why Pep Boys - Manny, Moe & Jack (PBY) Stock Is Falling After-Hours

NEW YORK (TheStreet) -- Pep Boys - Manny, Moe & Jack (PBY) was falling 5.6% to $11.30 in after-hours trading Monday after missing analysts' estimates for earnings and revenue in the fiscal third quarter.

For the fiscal third quarter Pep Boys posted a loss of 6 cents a share, missing analysts' estimate of earnings of 5 cents a share by 11 cents. Revenue fell 6.6% from the year-ago quarter to $495.7million. Analysts surveyed by Thomson Reuters expected revenue of $534.5 million for the quarter.

"On a comparable store basis, customer count, maintenance and repair sales and tire units all grew quarter over quarter," CEO Mike Odell said in a press release. "While retail tire pricing has recently stabilized, prices are still below last year's level, which has and is expected to continue to negatively impact top line sales results through the second quarter of 2014. We are also growing our service footprint, adding 30 Service & Tire Centers during fiscal 2014. These new Service & Tire Centers showcase the welcoming exterior curb appeal and comfortable customer lounge of our new Road Ahead format."

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TheStreet Ratings team rates PEP BOYS-MANNY MOE & JACK as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate PEP BOYS-MANNY MOE & JACK (PBY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."

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