The Pep Boys 5 Minutes of Fame

The Pep Boys - Manny, Moe & Jack  (Public, NYSE:PBY) stock is up 6% today due to its Q1 profit jumping 47%.  But how they got that number wasn't from same-stores sales numbers or even rising revenue.  So why is the stock on fire and will the fire die before the market closes?

That huge gain in profits is due to the Boys selling properties and then leasing them back from the buyers offset a drop in revenue. 

Before we get into the 'good' numbers, let's look at the bottom line:

Revenue fell 8 percent to $498 million, from $539.6 million in the first quarter of 2008. Analysts predicted revenue of $497.2 million.

Same-store sales, or sales at stores open at least a year, fell 5.6 percent.

How do you think next quarter will look if they can't raise sales and impress Wall Street? 

For the quarter ended May 3, net earnings rose to $4.7 million, or 9 cents per share, from $3.2 million, or 6 cents per share in the prior year.

Excluding certain items, net income from continuing operations rose 71 percent, to $5.3 million, or 10 cents per share, from $3.1 million, or 6 cents per share in the prior year quarter.

The company said the quarter's results include a $5.5 million net gain related to the sale leaseback transactions. The company did not provide a per-share profit result excluding the gain.

Analysts polled by Thomson Financial, on average, expected a loss of 3 cents per share.

Enjoy the ride today if you are a shareholder but expect the Street to take your profits if you wait to long.