Back to top

Image: Bigstock

Advance Auto (AAP) Q1 Earnings Miss Estimates, Decline Y/Y

Read MoreHide Full Article

Advance Auto Parts, Inc. (AAP - Free Report) reported adjusted earnings of 67 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 69 cents. The company reported an adjusted earnings per share (EPS) of 72 cents in the year-ago quarter.

Advance Auto generated net revenues of $3.41 billion, which missed the Zacks Consensus Estimate of $3.43 billion on lower-than-expected comparable store sales. Comparable store sales decreased 0.2% year over year. We projected a rise of 0.7% for the same. The top line dipped 0.3% year over year.

AAP reported an operating income of $86 million, which declined from $97.9 million recorded in the corresponding quarter of 2023. SG&A expenses totaled $1.34 billion for first-quarter 2024, down 1.4% year over year.

The company had cash and cash equivalents of $451 million as of Apr 20, 2024, compared with $503.5 million as of Dec 30, 2023. Total long-term debt was $1,787.2 million as of Apr 20, 2024, compared with $1,786.4 million as of Dec 30, 2023. In the first quarter of 2024, net cash provided by operating activities and negative free cash flow totaled $2.68 million and $46.3 million, respectively.

AAP’s board declared a cash dividend of 25 cents per share, which will be paid out on Jul 26, 2024, to all common shareholders of record as of Jul 12, 2024.

As of Apr 20, 2024, the company operated 4,777 stores and 320 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,152 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.

Advance Auto has revised its full-year 2024 guidance. It now expects 2024 net sales in the band of $11.30-$11.50 billion, up from the prior estimate of $11.30-$11.40 billion. Comparable store sales are projected in the range of 0-1%. The operating income margin is envisioned in the range of 3.2-3.5%.

AAP expects 2024 capex in the range of $200-$250 million. The company projects a minimum free cash flow of $250 million. Earnings per share are expected between $3.75 and $4.25.

 

Advance Auto Parts, Inc. Price, Consensus and EPS Surprise

Advance Auto Parts, Inc. Price, Consensus and EPS Surprise

Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. Quote

Zacks Rank & Key Picks

AAP currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked players in the auto space are Blue Bird Corporation (BLBD - Free Report) and Oshkosh Corporation (OSK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 9 cents each in the past 30 days.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Advance Auto Parts, Inc. (AAP) - free report >>

Oshkosh Corporation (OSK) - free report >>

Blue Bird Corporation (BLBD) - free report >>

Published in