Earnings Preview: Pep Boys (PBY)

The Pep Boys-Manny, Moe & Jack PBY is currently lower on the session by 0.24%, trading at $12.60. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $0.08 on revenue of $487.47 million. These estimates have stayed the same over the past 90 days. • Guidance The Street is looking for Q4 EPS of $0.04 on revenue of $474.91 million. The full year 2011 estimates are $0.56 per share on revenue of $1.98 billion; FY 2012 is at $0.71 per share on revenues of $2.09 billion. • Technical Picture PBY has been moving largely higher since bottoming in early July at $7.86. Shares have come all the way back to its previous two and a half year high, near $13.00. PBY is trading above the 50-day and 200-day moving averages; both are uptrending. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in June. Currently HI is at 26% and IV is at 47%. The front month $12.50 straddle is trading at 56.18%; the January 2011 $12.50 straddle is trading at 45.04%. The Pep Boys-Manny, Moe & Jack is an automotive service and retail chain. The company is engaged principally in automotive repair and maintenance and in the sale of automotive tires, parts and accessories through a chain of stores. As of January 30, 2010, the company operated stores in 35 states and Puerto Rico. Its primary operating unit is its Supercenter format, which serves both do-it-for-me, which includes service labor, installed merchandise and tires and do-it-yourself customers with service offerings and merchandise. The company operates approximately 11,686,000 of gross square feet of retail space, including service bays. The Supercenters average approximately 20,700 square feet, and Service & Tire Centers average 6,800 square feet.