Monro Muffler Brake narrowly beats Q2 estimates
Monro Muffler Brake, Inc. (Nasdaq: MNRO) shares are edging up after the automotive chain store operator reported second-quarter net income of $6.5 million, or $0.29 per share, slightly above analyst estimates of $0.28 per share and compared with $5.6 million, or $0.25 per share, a year earlier.
“While I am not satisfied with our second-quarter performance, our results were impacted by a challenging economy and weak consumer confidence which had the effect of delaying big ticket purchases,” CEO Robert Gross said in a statement. “We continue to reap the benefits of our low-cost operating model and our two-store format, both of which enable us to provide our loyal customers with products and services across a breadth of categories.”
The company acknowledged that last year’s second quarter included a one-time impairment expense of $1.7 million, or $0.08 per share, related to the Monro Muffler Brake’s Strauss Discount Auto equity investment.
The Rochester, N.Y.-based firm’s quarterly sales rose 4.4% to $112 million, slightly below analyst expectations of $112.8 million and compared with $107.2 million during the same period of 2006.
Going forward, the chain store operator said it expects third-quarter earnings in the range of $0.25 to $0.27 per share, in line with Wall Street projections of $0.25 per share. The company expects fiscal year sales in the range of $440 million to $445 million, compared to analyst estimates of $443.5 million.
In afternoon trading, MNRO shares are up 0.40%, or $0.09, at $22.85. Over the last 52 weeks, shares have ranged from $21.08 to $26.14.
