Advance Auto Parts, Inc. (NYSE:AAP) reported adjusted earnings of 77 cents per share in the fourth quarter of fiscal 2017 (ended Dec 30, 2017), declining from $1 in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 65 cents. Adjusted operating income declined to $113.7 million from $125.6 million in the fourth quarter of fiscal 2016.
Advance Auto Parts reported revenues of $2.04 billion, beating the Zacks Consensus Estimate of $2.02 billion. Revenues were 2.2% lower than the year-ago quarter. During the quarter, comparable store sales were down 2.6% year over year.
Gross profit declined to $873.6 million in the reported quarter from $907.6 million a year ago. Gross margin declined 69 basis points year over year to 42.9%.
Adjusted selling, general and administrative (SG&A) expenses totaled $759.9 million or 37.3% of sales compared with $781.9 million or 37.5% of sales in the year-ago period.
In 2017, earnings came in at $5.37, lower than the 2016 figure of $7.15 per share. In 2017, total revenues also decreased to $9.37 billion from $9.57 billion in 2016.
Financial Position
Advance Auto Parts had cash and cash equivalents of $546.9 million as of Dec 30, 2017, up from $135.2 million as of Dec 31, 2016. Total long-term debt was $1.04 billion as of Dec 30, 2017, almost unchanged from the figure released on Dec 31, 2016.
In 2017, operating cash flow was $600.8 million compared with $523.3 million in 2016.
Store Update
As of Dec 30, 2017, Advance Auto Parts operated 5,074 stores and 129 Worldpac branches and served approximately 1,218 independently-owned Carquest stores.
Advance Auto Parts carries a Zacks Rank #2 (Buy).
Other top-ranked companies in the auto space include General Motors Company (NYSE:GM) , Daimler AG (OTC:DDAIF) and Lear Corporation (NYSE:LEA) . Each of these stocks carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
General Motors has an expected long-term growth rate of 8.4%. In the past six months, shares of the company have grown 16.8%.
Daimler has an expected long-term growth rate of 5%. The shares of the company have risen 22.4% in the past six months.
Lear has an expected long-term growth rate of 7.1%. In the past six months, shares of the company have grown 33.2%.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise | Advance Auto Parts, Inc. Quote
Today’s Stocks from Zacks’ Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7% and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
General Motors Company (GM): Free Stock Analysis Report
Daimler AG (DDAIF): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Lear Corporation (LEA): Free Stock Analysis Report
Original post