Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Advance Auto Profit Falls, Yet Tops Estimate; Stock Up - Update

Advance Auto Parts Inc. (AAP: Quote), Thursday reported a lower fourth-quarter profit, as the automotive parts retailer incurred higher selling and interest expenses that offset a slight improvement in revenues. Nonetheless, quarterly earnings topped Street estimates, sending the company's shares up nearly 7 percent in morning trade on the New York Stock Exchange.

The Roanoke, Virginia-based company reported fourth-quarter net income of $65 million or $0.88 per share, compared with $66 million or $0.90 per share last year.

On average, 20 analysts polled by Thomson Reuters estimated earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue for the period totaled $1.329 billion, compared with $1.327 billion a year ago. Analysts on consensus estimated revenues of $1.33 billion for the quarter.

On a same-store basis, sales were negative at 1.9 percent, compared with a growth of 2.9 percent a year ago.

Results were impacted with selling, general and administrative expenses increasing to $550 million from $539 million in the prior year. Interest expense rose to $8 million from $5 million a year ago.

Gross margin for the quarter rose 9 basis points to 49.9 percent, reflecting improvements in shrink and supply chain efficiencies.

The company declared a dividend of $0.06 per share, payable April 5 to stockholders of record as of March 22.

For fiscal year 2013, the company expects net earnings of $5.30 to $5.45 per share, including BWP one-time integration costs. Operating earnings are forecast in the range of $5.45 to $5.60 per share.

Analysts currently estimate earnings of $5.58 per share for 2013.

The company expects to open 170 to 190 new stores during the year.

The company's stock is trading at $77.66, up 6.53%, on a volume of 2.6 million shares.

Register
To receive FREE breaking news email alerts for Advance Auto Parts and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.