We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advance Auto Parts (AAP) Misses on Q4 Earnings, Beats Sales
Read MoreHide Full Article
Advance Auto Parts Inc. (AAP - Free Report) reported a decline in adjusted earnings to $1.00 per share in the fourth quarter of fiscal 2016 (ended Dec 31, 2016) from $1.22 earned in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of $1.09. Adjusted net earnings declined to $125.6 million from $157.6 million in the fourth quarter of fiscal 2015.
Revenues improved 2.5% year over year to $2.08 billion and surpassed the Zacks Consensus Estimate of $2.01 billion. The year-over-year rise in the top line was due to growth in comparable store sales and a Worldpac branch opening, partly offset by store closures and Carquest store consolidations. Comparable store sales grew 3.1% in the reported quarter as against a decline of 2.5% recorded a year ago.
Gross profit declined to $907.6 million or 43.6% of sales in the reported quarter from $909.2 million or 44.7%, recorded a year ago. The decrease in gross profit margin can be attributed to supply chain expenses and headwinds related to inventory level reductions.
Adjusted selling, general and administrative (SG&A) expenses totaled $781.9 million or 37.5% of sales in the quarter under review, compared with $751.6 million or 37% in the fourth quarter of fiscal 2015. The rise in SG&A was due to continued investments in customer service initiatives.
Comparable operating income rose 5.4% to $106.1 million from $100.7 million in the prior-year quarter. Adjusted operating margin was 6% as against the 7.7% figure recorded a year ago.
Advance Auto Parts Inc Price, Consensus and EPS Surprise
For full-year 2016, Advance Auto Parts reported adjusted earnings of $7.15 per share, down from $7.82 reported in 2015. The figure also missed the Zacks Consensus Estimate of $7.24. Operating income in the year fell 4.6% to $787.6 million.
Revenues in 2016 were $9.57 billion, down from the $9.74 billion earned in 2015. However, revenues surpassed the Zacks Consensus Estimate of $9.5 billion.
Dividend
On Feb 15, 2017, the board of directors of Advance Auto Parts declared a regular quarterly dividend of 6 cents per share, payable on Apr 7, 2017, to stockholders on record as of Mar 24, 2017.
Financial Position
Advance Auto Parts had cash and cash equivalents of $135.2 million as of Dec 31, 2016, reflecting an increase from $90.8 million as of Jan 2, 2016. Total long-term debt was $1.04 billion as of Dec 31, 2016, compared with $1.21 billion as of Jan 2, 2016.
During the 52-week period ended Dec 31, 2016, operating cash flow was $500.9 million compared with $689.6 million in the year-ago period. Free cash flow in the said period amounted to $241.3 million compared with $454.9 million in the prior-year period. Capital expenditures amounted to $259.6 million compared with $234.7 million a year ago.
Store Update
Advance Auto Parts enhances profits through its continued focus on store expansion. As of Dec 31, 2016, the company’s total store count was 5,062, including 127 Worldpac branches. Advance Auto Parts served roughly 1,250 independently owned Carquest stores as of that date.
Outlook
For full-year 2017, Advance Auto Parts expects adjusted operating income margin to improve 0.15−0.35%. The company also expects to open 75−85 new stores, including Worldpac branches.
Capital expenditure for the year is projected to be roughly $250 million.
Advance Auto Parts has underperformed the Zacks categorized Retail/Wholesale-Auto Parts industry over the past three months. The company’s shares have lost 3.2% over this period, as against a 0.6% gain recorded by the industry.
Zacks Rank & Other Stocks to Consider
Advance Auto Parts currently carries a Zacks Rank #2 (Buy).
Spartan Motor has long-term expected growth rate of 15%.
American Axle has long-term expected growth rate of 8.07%.
Ferrari has long-term expected growth rate of 15.15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Advance Auto Parts (AAP) Misses on Q4 Earnings, Beats Sales
Advance Auto Parts Inc. (AAP - Free Report) reported a decline in adjusted earnings to $1.00 per share in the fourth quarter of fiscal 2016 (ended Dec 31, 2016) from $1.22 earned in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of $1.09. Adjusted net earnings declined to $125.6 million from $157.6 million in the fourth quarter of fiscal 2015.
Revenues improved 2.5% year over year to $2.08 billion and surpassed the Zacks Consensus Estimate of $2.01 billion. The year-over-year rise in the top line was due to growth in comparable store sales and a Worldpac branch opening, partly offset by store closures and Carquest store consolidations. Comparable store sales grew 3.1% in the reported quarter as against a decline of 2.5% recorded a year ago.
Gross profit declined to $907.6 million or 43.6% of sales in the reported quarter from $909.2 million or 44.7%, recorded a year ago. The decrease in gross profit margin can be attributed to supply chain expenses and headwinds related to inventory level reductions.
Adjusted selling, general and administrative (SG&A) expenses totaled $781.9 million or 37.5% of sales in the quarter under review, compared with $751.6 million or 37% in the fourth quarter of fiscal 2015. The rise in SG&A was due to continued investments in customer service initiatives.
Comparable operating income rose 5.4% to $106.1 million from $100.7 million in the prior-year quarter. Adjusted operating margin was 6% as against the 7.7% figure recorded a year ago.
Advance Auto Parts Inc Price, Consensus and EPS Surprise
Advance Auto Parts Inc Price, Consensus and EPS Surprise | Advance Auto Parts Inc Quote
Full-Year 2016
For full-year 2016, Advance Auto Parts reported adjusted earnings of $7.15 per share, down from $7.82 reported in 2015. The figure also missed the Zacks Consensus Estimate of $7.24. Operating income in the year fell 4.6% to $787.6 million.
Revenues in 2016 were $9.57 billion, down from the $9.74 billion earned in 2015. However, revenues surpassed the Zacks Consensus Estimate of $9.5 billion.
Dividend
On Feb 15, 2017, the board of directors of Advance Auto Parts declared a regular quarterly dividend of 6 cents per share, payable on Apr 7, 2017, to stockholders on record as of Mar 24, 2017.
Financial Position
Advance Auto Parts had cash and cash equivalents of $135.2 million as of Dec 31, 2016, reflecting an increase from $90.8 million as of Jan 2, 2016. Total long-term debt was $1.04 billion as of Dec 31, 2016, compared with $1.21 billion as of Jan 2, 2016.
During the 52-week period ended Dec 31, 2016, operating cash flow was $500.9 million compared with $689.6 million in the year-ago period. Free cash flow in the said period amounted to $241.3 million compared with $454.9 million in the prior-year period. Capital expenditures amounted to $259.6 million compared with $234.7 million a year ago.
Store Update
Advance Auto Parts enhances profits through its continued focus on store expansion. As of Dec 31, 2016, the company’s total store count was 5,062, including 127 Worldpac branches. Advance Auto Parts served roughly 1,250 independently owned Carquest stores as of that date.
Outlook
For full-year 2017, Advance Auto Parts expects adjusted operating income margin to improve 0.15−0.35%. The company also expects to open 75−85 new stores, including Worldpac branches.
Capital expenditure for the year is projected to be roughly $250 million.
Advance Auto Parts has underperformed the Zacks categorized Retail/Wholesale-Auto Parts industry over the past three months. The company’s shares have lost 3.2% over this period, as against a 0.6% gain recorded by the industry.
Zacks Rank & Other Stocks to Consider
Advance Auto Parts currently carries a Zacks Rank #2 (Buy).
Other well-ranked stocks in the auto space include Spartan Motors Inc. , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Ferrari N.V. (RACE - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Spartan Motor has long-term expected growth rate of 15%.
American Axle has long-term expected growth rate of 8.07%.
Ferrari has long-term expected growth rate of 15.15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>