logo
Share SHARE
FONT-SIZE Plus   Neg

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

Advance Auto Parts Inc. (AAP), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
HSBC is reportedly laying off about 100 of its senior investment bankers worldwide, as the banking giant strives to curb operating costs. According to reports, the London-headquartered bank will eliminate managing director and director level employees at the Global Banking and Markets division, as... Samsung Electronics Co., Ltd. (SMSN.L, SSNNF.OB, SSNLF.OB) will reportedly blame faulty batteries for last year's Galaxy Note 7 fiasco. According to a Wall Street Journal report, Samsung's investigation of Galaxy Note 7 smartphones found that some batteries were irregularly sized while others had... Federal investigators have closed their probe of a fatal crash that involved a Tesla Motors Inc. car eight months ago. The regulators said they have found no safety defects in the vehicle's automated driving system and that Tesla's Autopilot-enabled vehicles did not need to be recalled.
comments powered by Disqus
Follow RTT