UPDATE 1Monro Muffler posts higher Q3 earnings; shares up
(Adds details, share movement)
Jan 24 (Reuters) - Operator of auto repair chains Monro
Muffler Brake Inc (MNRO.O: Quote, Profile, Research) posted higher third-quarter earnings
even as sales of its more expensive products and services were
hurt by tight consumer spending, and forecast 2008 profit above
analysts’ view, sending shares up 7 percent.
For the third quarter, the Rochester, New York-based company
earned $5.3 million, or 25 cents a share, compared with $4.9
million, or 21 cents a share, a year ago. Sales rose 8.4
percent to $112.5 million.
Analysts on average were expecting earnings of 21 cents a
share, before items, on sales of $113.3 million, according to
Reuters Estimates.
The company, which currently operates 713 stores, lowered
its full year 2008 earnings outlook on fears of a weakening
consumer confidence, but still topped analysts’ expectations.
For the full year, the company sees earnings of $1.03 to
$1.05 a share. In October, it had forecast $1.08 to $1.11 a
share.
Analysts were expecting earnings of $1.02 a share for the
year.
“We are closely monitoring the impact of weakening consumer
confidence on our results, particularly on sales of our higher
ticket and higher-margin categories,” Chief Executive Officer
Robert Gross said in a statement.
For the year, the company expects comparable store sales on
a reported basis to decrease 3 percent to 5 percent, due to one
less selling week as compared with fiscal 2007.
Shares of the company were up $1.15 at $18.19 in afternoon
trade on the Nasdaq.
(Reporting by Biswarup Gooptu in Bangalore; Editing by Deepak
Kannan)
