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Advance Auto Parts (AAP) Beats on Q2 Earnings & Revenues

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Advance Auto Parts, Inc. (AAP - Free Report) reported adjusted earnings of $1.97 per share in second-quarter 2018 (ended Jul 14, 2018), up from $1.58 in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.85. Adjusted operating income increased to $167.5 million from $146.7 million in second-quarter 2017.

Advance Auto Parts reported net revenues of $2.33 billion, beating the Zacks Consensus Estimate of $2.26 billion. Revenues were 2.8% higher than the year-ago quarter. During the quarter under review, comparable store sales were 2.8% higher year over year.

Gross profit was $1.01 billion in the reported quarter, higher than the prior-year quarter figure of $993.1 million. Gross Profit margin decreased 40 basis points year over year to 44.3%.

Adjusted selling, general and administrative (SG&A) expenses totaled $811.6 million or 34.9% of sales compared with $1797.6 million or 35.2% of sales in the year-ago period.

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

 

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

Financial Position

Advance Auto Parts had cash and cash equivalents of $902.2 million as of Jul 14, 2018, up from $257.2 million as of Jul 15, 2017. The total long-term debt was $1.05 billion as of Jul 14, 2018, higher than $1.04 billion as of Dec 30, 2017.

In second-quarter 2018, operating cash flow was $444 million compared with $267.3 million in the same period of 2017.

Dividend & Share Repurchase

On Aug 8, 2018, Advance Auto Parts’ board approved a cash dividend of 6 cents per share to be paid on Oct 5, 2018, for shareholders of record as of Sep 21, 2018.

On Aug 8, 2018, the board of directors authorized a $600-million share repurchase program, replacing the existing $500-million share repurchase program.

Store Update

As of Jul 14, 2018, Advance Auto Parts operated 5,026 stores and 133 Worldpac branches and served approximately 1,219 independently-owned Carquest stores.

Zacks Rank & Other Stocks to Consider

Advance Auto Parts currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Fox Factory Holding Corp. (FOXF - Free Report) , PACCAR Inc. (PCAR - Free Report) and AB Volvo (VLVLY - Free Report) . While Fox Factory sports a Zacks Rank #1 (Strong Buy), both PACCAR and Volvo carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 76.2% over the past year.

PACCAR has an expected long-term growth rate of 10.8%. Over the past month, shares of the company have moved up 2.2%.

AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have gained 52.4%.

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