When Advance Auto Parts Inc. (NYSE: AAP) released its second-quarter financial results before the markets opened on Tuesday, the company continued the trend of a sinking bottom line in the auto parts industry. SORL reported earnings on Monday much to the same effect.
Advance Auto Parts said that it had $1.58 in earnings per share (EPS) and $2.26 billion in revenue. That compared with consensus estimates from Thomson Reuters of $1.67 in EPS and revenue of $2.26 billion. The same period of last year reportedly had EPS of $1.90 and $2.26 billion in revenue.
Comparable store sales for the quarter were flat.
In terms of the outlook for the coming year, the firm expects to see comparable sales falling from 3% to 1%, a reduction of 200 to 300 basis points in adjusted operating income from last year, and free cash flow of at least $300 million. The consensus estimates call for $6.36 in EPS and $9.54 billion in revenue for the fiscal full year.
Advance Auto Parts cash and cash equivalents totaled $257.23 million at the end of the quarter, up from with $135.18 million at the end of the previous fiscal year.
Tom Greco, President and CEO, commented:
We delivered sales growth and continued to close the comp sales performance gap versus the industry in Q2 while more than doubling year to date Free Cash Flow. Our revised guidance for the year incorporates the impact of industry headwinds in the first half, which we expect to continue in the second half of the year and we are taking the appropriate actions to adapt to this environment. We’ve now assembled a world class leadership team that is executing our transformation plan to significantly drive growth and long term shareholder value.
Shares of Advance Auto Parts closed Monday at $109.32, with a consensus analyst price target of $133.71 and a 52-week range of $99.13 to $177.83. Following the release of the earnings report, the stock was down about 13% at $95.20 in early trading indications Tuesday.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.