Advance Auto Parts (AAP) Misses On Q1 Earnings & Revenues

Advance Auto Parts Inc. (NYSE:AAP) is the largest automotive parts provider in North America, serving the “do-it-yourself” or “DIY”, and “do-it-for me” or “DIFM” customers. It operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, light and heavy duty trucks.

Advance Auto Parts enhances profits through its relentless focus on store expansion. The company is poised to benefit as the auto industry continues to show stability with the increasing average age of vehicles, along with a rise in the number of miles driven. However, Advance Auto Parts faces challenges from rising new vehicle sales and price competition.

As a result, investors have been eagerly awaiting Advance Auto Parts’ latest earnings report. Let’s take a quick look at the company’s second-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Advance Auto Parts for the first quarter of 2016 has decreased by 2 cents to $2.61 over the past month.

The company has delivered mixed earnings surprises. It has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average miss of around 2.01%.

Zacks Rank

Advance Auto Parts currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Advance Auto Parts reported earnings of $2.51 per share, which missed the Zacks Consensus Estimate of $2.61. Meanwhile, earnings increased 5% from $2.39 recorded in the year-ago quarter.

Revenues

Advance Auto Parts logged revenues of $2.98 billion, missing the Zacks Consensus Estimate of $3.01 billion. Revenues also decreased year over year from $3.04 billion posted a year-ago quarter.

Key Stats/Developments to Note

Advance Auto Parts enhances profits through its relentless focus on store expansion. In 2016, Advance Auto Parts plans to open 65 to 75 new stores including Worldpac branches.

Market Reaction

Advance Auto Parts’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Advance Auto Parts’ earnings report!

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