Advance Auto Parts Inc (NYSE: AAP)
Advance Auto Parts Inc. on Tuesday announced upbeat fourth-quarter earnings and revenue, sending its shares up 4% in pre-market trading. The Raleigh, NC-based company also issued comparable store sales growth guidance for the current year that was below analysts’ estimates.
Shares of the auto parts retailer have risen 58% in the last 12 months. The stock has gained 8% since the beginning of the year.
AAP Earnings & Outlook
Advance Auto Parts said fourth-quarter net income was $53.4 million, or $0.74 per share, down from $184.5 million, or $2.49 per share, in the year-ago period. Earnings, adjusted for one-time costs and gains came to $1.17 per share. On average, analysts surveyed by Refinitiv expected the auto parts retailer to report adjusted earnings of $1.14 per share.
Net sales totaled $2.11 billion, up 3.3% year-over-year and in line with analyst estimates. Sales at Advanced Auto Parts stores operating for at least 12 months were up 3.4%, below the consensus estimate of a 3.6% rise.
For the full year, Advance Auto Parts posted a profit of $423.8 million, or $5.73 per share on net sales of $9.58 billion. Comparable store sales rose 2.3% in 2018, the auto parts retailer said.
Looking into fiscal 2019, the company expects net sales to be in the region of $9.65 billion to $9.80 billion and comparable store sales growth of between 1.0% to 2.5%. Analysts forecast net sales of $9.78 billion and comparable store sales growth of 2.0% for the year.
Advance Auto Parts CEO Comments
“I am proud to report another quarter of comp sales and adjusted operating income growth as we concluded the second year of our transformation agenda with consistent, balanced improvement in nearly every metric. The dedication of our entire team is evident as they focused on delighting the Customer and growing the top-line while remaining disciplined in controlling costs to deliver margin expansion,” said President and Chief Executive Officer Tom Greco.
“We are pleased with the continuous progress throughout 2018 versus our long-term strategic objectives and remain committed to further strengthening our Customer Value Proposition to capitalize on the substantial opportunity still ahead for Advance.”
Advance Auto Parts, Inc. Profile
Advance Auto Parts is an automotive aftermarket parts provider, serving do-it-for-me (Professional) and do-it-yourself (DIY) customers. Its categories of products include Parts and Batteries, Accessories and Chemicals, and Engine Maintenance.
The Company’s stores and branches offer battery accessories, belts and hoses, brakes and brake pads, chassis and climate control parts, clutches and drive shafts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wires, radiators and cooling parts, starters and alternators, and steering and alignment parts. – Craft