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Advance Auto Parts (AAP) Q4 Earnings Top Estimates, Down Y/Y

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Advance Auto Parts, Inc. (AAP - Free Report) 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 (GM - Free Report) , Daimler AG and Lear Corporation (LEA - Free Report) . 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

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