Advance Auto Parts, Inc. | $AAP Stock | Shares Gain $11 On Strong Q2 Results

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Advance Auto Parts, Inc. (NYSE: AAP) 

 

Auto parts retailer, Advance Auto Parts came out with an upbeat second-quarter report early Tuesday, which sent its stock on an upward run. The Roanoke, Virginia-based company finished above Wall Street expectations on both profit and sales.

Advance Auto Parts also boosted its revenue forecast for the full year, and announced plans to return $100 to $200 million to its shareholders through a new share buyback program.

AAP Earnings & Outlook

The company posted net income of $117.8 million, or $1.59 per share during the quarter, compared with net income of $87.0 million, or $1.17 per share, in the year ago period.

Adjusted for one-time items, earnings came in at $1.97 per share, while revenue jumped to $2.33 billion from the earlier-year figure of $2.26 billion.

Analysts were for adjusted earnings of $1.86 on revenue of $2.27 billion, according to figures compiled by Thompson Reuters.

Same-store sales recorded a growth of 2.8%, surpassing estimates of 0.1% increase. Looking ahead, the company hopes to report full-year revenue of $9.30 billion to $9.50 billion, compared with estimates of $9.38 billion.

Advance Auto Parts CEO Comments

Commenting on the performance, Advance Auto Parts President and Chief Executive Officer Tom Greco said, “Our relentless focus on strengthening our Customer Value Proposition while embracing an owner’s mindset on cost and cash resulted in improved sales and profit performance in the second quarter. I am encouraged by the progress our team made during the first half of 2018 and confident in our ability to drive growth throughout the balance of 2018.”

Advance Auto Parts Company Profile

Advance Auto Parts, Inc. offers automotive replacement parts, batteries, accessories, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.

The company also provides 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.

In addition, it offers AC chemicals and accessories, air fresheners, antifreeze and washer fluids, electrical wires and fuses, electronics, hand and specialty tools, lighting products, performance parts, sealants, adhesives and compounds, tire repair accessories, vent shades, mirrors and exterior accessories, washes, waxes and cleaning supplies, wiper blades, floor mats, seat covers, and interior accessories.

Further, it offers air filters, fuel and oil additives, fuel filters, grease and lubricants, motor oils, oil filters, part cleaners and treatments, and transmission fluids for engine maintenance.

As of December 30, 2017, the company operated 5,054 stores under Advance Auto Parts, Autopart International, and Carquest brand names; and 129 branches under the Worldpac brand name in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada.

It also served approximately 1,218 independently owned Carquest branded stores in Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands, and the Pacific Islands.

The company was founded in 1929 by Arthur Taubman. –Yahoo

 

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