Why Pep Boys (PBY) Stock Is Down in After-Hours Trading

NEW YORK (TheStreet) -- Pep Boys (PBY) was falling 8.3% to $10.46 after-hours Monday after missing analysts' estimates for earnings and revenue for the second quarter.

For the second quarter the auto parts store reported break-even earnings, missing the Capital IQ Consensus Estimate of 16 cents a share by 16 cents. Revenue fell -0.3% year over year to $525.8 million for the quarter, missing analysts' estimates of $534.56 million for the quarter.s

"Our service maintenance and repair business, as well as our digital and commercial operations, continue to be bright spots," president and CEO Mike Odell said. "However, these gains were outpaced in the second quarter by declines in DIY and tires. During the first five weeks of the third quarter, our performance has improved to a small overall comp sales increase."

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

You can view the full analysis from the report here: PBY Ratings Report

PBY Chart PBY data by YCharts

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