NEW YORK (TheStreet) -- Pep Boys (PBY) shares are up 6% to $11.15 on Tuesday, continuing the momentum it gained in after-hours trading on Monday following the release of the company's first quarter earnings results.
Shares are up after the company said that it expects to have a prosperous second quarter despite a first quarter in which the car care company reported earnings of 3 cents per diluted share, 2 cents worse than analysts expectations, and revenue of $538.8 million, also below Wall Street's $541.6 estimates.
The company stated that they expect sales trends to improve in the second half of the year while reporting that its service business has improved during the first five weeks of the current quarter.
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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins."