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
Ford Motor Co.'s former Chief Executive Officer Mark Fields, who was ousted in mid May as the company lost almost $25 billion in market value, could walk away with about $57.5 million worth payouts, Bloomberg reported. Lyft announced the launch of luxury black car service, Lyft Lux and Lux SUV, in comparison to black luxury car services that rival Uber originally launched with. With Lyft Lux, passengers will be able to book a black car or luxury black SUV from the Lyft app. The two premium ride hailing options... Kik Interactive Inc., the parent of chat app Kik, said it will launch a new cryptocurrency or token called Kin for use in everyday digital services, such as chat, social media and payments. Kik said it has decided to propose a new ecosystem of digital services that will be truly open and decentralized, and will start with a new cryptocurrency.
comments powered by Disqus
Follow RTT