Monro 4Q Earnings Up, Aftermarket Sales Trends Sluggish

Monro reported 4Q net income climbed 17% with total sales up 8.8% and a 0.4% decline in comparable same-store sales. Management said the increase in new stores sales of $5.0 million and the bulk sale of $3.5 million of slower moving inventory more than offset the comparable store sales decrease.

The stock is down 6.4% as of 11:00am Eastern. The conference call is underway. We believe the weakness in the shares reflect management guidance. Specifically, they provided full year FY07 guidance of $1.68 to $1.76, EPS growth of 11% to 17%. Zack’s consensus was $1.75, so at the high end. However, 1Q ...

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