Monro Muffler Brake Inc. – Momentum – Zacks Rank Buy
Source: http://www.zacks.com/commentary/10255/Monro+Muffler+Brake+Inc.+-+Momentum+-+Zacks+Rank+BuyPosted on Tuesday, March 10th, 2009 | In Stocks to Watch
Monro Muffler Brake Inc. (MNRO) continues to trend higher on the company’s solid third-quarter results and bullish estimates from the analyst community.
Company Description
Monro Muffler Brake Inc. provides automotive undercar repair and tire service. The company’s services trucks and cars with oil changes and general maintenance. Monro was founded in 1957 and has a market cap of $453 million.
Third-Quarter Results
Monro Muffler has performed well in a weak economy as cash-strapped consumers look for ways to curb spending. The company’s third-quarter results, reported on Jan 19, showcased this dynamic.
Sales were up 5.5% from last year to $118.7 million, while income increased to $5.6 million from $5.3 million. This produced earnings of 28 cents per share. in line with the consensus estimate.
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Consistent Results
This was the fourth time in the last four quarters that Monro has either beaten or marched estimates, having done so by an average of 2 cents, or 4.10%.
Monro provided some texture to its results, saying that consumer decisions to delay purchasing a new car have increased demand for its products and services.
Estimates Holding
Analysts have retained their bullish outlook on the company, with the current-year estimate standing at $1.19 per share and the next-year estimate pegged at $1.39, a 16% earnings growth projection.
The Chart
Shares of MNRO have been rallying since bottoming out in November just above $15, having since eclipsed the $25 mark and pressuring the 52-week and all-time high. More recently, this stock has retreated from its high but still remains in elevated territory. Take a look below.
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 About Michael Vodicka (http://www.zacks.com/)
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