Monro Muffler Brake Q1 Profit Rises, Trims 2014 Outlook - Quick Facts

(RTTNews) - Monro Muffler Brake Inc. (MNRO) reported net income $13.57 million or $0.42 per share for the first quarter, higher than $11.64 million or $0.36 per share in the prior-year quarter.

Sales for the quarter increased 21.9 percent to $206.17 million from $169.18 million for the same quarter last year.

Comparable store sales increased 1.2 percent. Gross margin decreased 200 basis points to 38.3 percent from last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share on revenues of $210.62 million for the quarter. Analysts' estimates typically exclude special items.

Monro Muffler also announced that it has agreed to acquire 10 Curry's Auto Service stores located in the Washington D.C. metropolitan area, enabling the Company to fill in an existing market. Annual sales for these stores are about $18 million. The deal is expected to close in mid-August 2013.

Looking ahead to the second quarter, the company anticipates comparable store sales increases to be between flat and up 2 percent. The company also expects earnings in a range of $0.41 to $0.45 per share. Analysts expect the company to report earnings of $0.47 per share on revenues of $214.02 million for the second quarter.

For fiscal 2014, the company trimmed its earnings guidance to a range of $1.58 to $1.70 per share from the prior forecast range of $1.65 to $1.80 per share, on projected sales between $840 and $860 million, compared to the previous guidance of between $840 and $865 million.

Comparable store sales is now expected to increase 1 to 3 percent, compared to the earlier 2.5 to 4.5 percent.

Street is currently looking for full-year 2014 earnings of $1.76 per share on revenues of $862.17 million.