Monro fiscal 2Q net income falls on fewer repairs
ROCHESTER, N.Y. (AP) — Monro Muffler Brake Inc. said Thursday its net income fell 24 percent to $11.5 million in its fiscal second quarter, as revenue increases from new stores were offset by same-store declines in brake repairs and other services.
Monro's earnings of 36 cents per share, compared with earnings of 47 cents per share in the July-September period a year ago. Monro missed Wall Street's earnings forecast by a penny, according to analysts polled by FactSet.
Revenue rose 2 percent to $176.5 million thanks to the Aug. 12 acquisition of 17 new stores in Wisconsin and South Carolina. That missed Wall Street's forecast of $183 million.
The Rochester-based company said high gas and food prices, compounded by high unemployment, are causing customers to defer service on their vehicles. Comparable store sales fell 4.6 percent during the quarter, as the company replaced fewer tires and did fewer alignments, brake jobs and exhaust system repairs.
Munro announced that it plans to acquire multiple stores with total sales of $60 million in the current quarter, which is the third quarter of its 2013 fiscal year. The company expects full-year sales in the range of $720 million to $735 million, or slightly above its estimates in the first quarter. Analysts had forecast full-year revenue of $736.5 million.
Munro shares rose nearly 3 percent to close at $33.92.