Advance Auto Parts Inc (NYSE:AAP)
On Tuesday before the market opened, Advanced Auto Parts ($AAP) announced third quarter earnings that topped analyst estimates and sent shares rallying in the premarket.
They reported earnings per share of $1.43 on $2.18 billion in revenues while analyst were looking for $1.21 earnings per share on $2.21 billion in revenues. Same store sales fell to 3.4% and the company remained confident in a 1-3% decline in same store sales for 2017.
CEO Comments
“We continue to take steps to build the foundation for future growth. We executed key transformational initiatives, including a complete restructure of our field operations and professional sales leadership teams. This important step in our journey sets us up well for the future. In the third quarter, we delivered improvements in cost initiatives while positioning the business for future success. We remain on track to deliver our 2017 guidance,” said Tom Greco, President and Chief Executive Officer.
AAP Technicals
Shares of Advanced Auto Parts rallied in the premarket following strong third quarter results. Prices hit premarket highs of $96 before pulling back slightly, marking a 16.6% jump in value from Monday’s close of $82.28.
Look for shares to be extra volatile today as more traders will be paying attention to this stock. If shares continue to rally, look for the $100 level at act as major resistance followed up by $105 and $110. Support should be met at $92 and $90.
Advanced Auto Parts Profile
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.
The company offers batteries and battery accessories, belts and hoses, brakes and brake pads, chassis and climate control parts, clutches and drive shafts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wired, radiators and cooling parts, starters and alternators, and steering and alignment parts.
It also offers AC chemicals and accessories, air fresheners, antifreeze and washer fluids, electrical wires and fuses, electronics, hand and specialty tools, lighting products, performance parts, sealants, adhesives and compounds, tire repair accessories, vent shades, mirrors and exterior accessories, washes, waxes and cleaning supplies, and wiper blades, as well as floor mats, seat covers, and interior accessories.
In addition, the company offers air filters, fuel and oil additives, fuel filters, grease and lubricants, motor oils, oil filters, part cleaners and treatments, and transmission fluids for engine maintenance.
Further, it offers battery and wiper installation, battery charging, check engine light reading, video clinic, oil and battery recycling, loaner tool program, and electrical system testing services.
Additionally, the company sells its products online through AdvanceAutoParts.com and Worldpac.com. It serves do-it-for-me and do-it-yourself customers, as well as independently-owned operators.
As of December 31, 2016, the company operated 5,062 stores and 127 WORLDPAC branches; and served approximately 1,250 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada, as well as Mexico and the Bahamas, Turks and Caicos, the British Virgin Islands, and the Pacific Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia.