Pep boys rising to the top

Pep Boys posted a third-quarter profit as the company benefited from more Americans holding onto their cars and fixing them up.
The retailer, which fixes cars and sells auto parts and accessories, posted earnings of $2.1 million, or 4 cents a share, versus a loss of $7.3 million in the year-earlier period, or 14 cents.
For the third quarter ended Oct. 31, Pep Boys had sales of $472.6 million, up 1.8 percent from $464.2 million. On a comparable basis, measuring the same locations as a year ago, sales rose by 1.6 percent, bolstered by an 8.9 percent gain in revenue from car repairs. Merchandise sales, by contrast, were flat.
In anticipation of positive news, shares of Pep Boys (NYSE:PBY) closed at $9.27 Monday, up 5 percent, though the company did not release results until after the market closed.
Through nine months, the company had earnings of $20.8 million, or 40 cents a share, up from $2.8 million, or 5 cents a share, in the year-earlier period.
Sales through the first three quarters totaled $1.458 billion, down slightly from $1.462 billion a year earlier. On a comparable basis, sales dipped by 0.4 percent, with revenue from repairs up 5.9 percent, while merchandise sales fell by 1.8 percent.
Pep Boys, which is based in Philadelphia, has 580 stores and 6,000 service bays in 35 states and Puerto Rico.