Second-Quarter Results
Revenue for the period was up 24% from last year to $158 million, with same-store sales up a very solid 5.1%. Earnings also came in strong at 61 cents, 3 cents ahead of the Zacks Consensus Estimate, moving the company's average earnings surprise over the last four quarters to 7%.
Monro did see some slippage in its gross margin, falling to 42% from 44% as the company advances in the lower margin tire business related to its acquisition of 79 tire stores in 2010 and throughout 2011. Monro did however improve on operating expenses, where costs fell to 27% of revenue from 31% last year.
Balnce Sheet
Monro doesn't have a huge cash position, standing at just $3 million, but it did pay down some debt during the quarter, with its total debt falling $9 million to $89 million.
Estimates
We saw a little bit of movement in estimates off the good quarter, with the current year adding 2 cents to $2.02 and the next year holding steady at $2.42, a solid 20% growth projection.
Valuation
After the recent string of gains, MNRO does look a bit pricey, trading with a forward P/E of 20X against its peers 16X.
2-Year Chart
MNRO recently hit a new multi-year high at $42.40 on the good quarter before pulling back a bit in the choppy market. Look for support from the trend line on any weakness, take a look below.
Read the June 28 MNRO article here
Last Week's Momentum Zacks Rank Buy Stocks
Stanley Black & Decker, Inc. (SWK) recently rebounded from a key trend line after reporting better than expected Q2 results in late July that included a 61% earnings surprise. Estimates have since jumped higher, with the next-year estimate now projecting 27% growth. Read Full Article.
51job Inc. (JOBS) recently hit a new multi-year high after reporting solid Q2 results on Aug 5 that contained 36% sales growth from last year. Estimates have since jumped higher for this Zacks #1 rank stock, with the next-year estimate now projecting 32% growth. Read Full Article.
Crocs, Inc. (CROX) just hit a multi-year high after reporting better than expected Q2 results on Aug 5 that included a 61% earnings surprise. With a growing international presence and strong online sales, the company has capitalized on the improving consumer environment. Read Full Article.
Las Vegas Sands Corp. (LVS) just hit a new multi-year high after reporting an awesome 89% earnings surprise in late July, sending estimates soaring for this Zacks #1 rank stock. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
MONRO MUFFLER (MNRO): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.