ROCHESTER, N.Y. (AP) -- Monro Muffler Brake Inc. said Thursday its fiscal first-quarter net income jumped 17 percent, helped by sales contributions from new stores.
Despite the jump, the results fell short of Wall Street predictions and the company cut its profit outlook for the full year. Monro shares were off more than 7 percent in afternoon trading.
For the quarter ended June 29, the Rochester, N.Y.-based automotive repair chain earned $13.6 million, or 42 cents per share, up from $11.6 million, or 36 cents per share, in the same quarter of 2012.
Revenue increased 22 percent to $206.2 million from $169.2 million.
Analysts, on average, expected a profit of 46 cents per share on $211.3 million in revenue, according to FactSet.
Recently acquired stores contributed $36 million in revenue. Revenue at stores open at least a year rose 1.2 percent. The metric is a key measure of a retailer's health, because it excludes revenue at stores that recently opened or closed.
Monro President and CEO John Van Heel said that while the company's customers are having necessary work done on their vehicles, they continue to put off major work or opt for less expensive maintenance options, reducing the company's sales.
Monro cut its fiscal 2014 earnings prediction to a range of $1.58 to $1.70 per share. It previously predicted $1.65 to $1.80 per share. Analysts expect $1.76 per share.
For the current quarter, the company said it expects to earn between 41 cents and 45 cents per share, while analysts expect 47 cents per share.
In afternoon trading, Monro shares fell $3.42 to $44.78, after dipping as low as $42.90 earlier in the day. Over the past 52 weeks, the company's shares have traded between $30.72 and $51.12.