Advance Auto Parts, Inc. (AAP - Free Report) reported adjusted earnings of $1.17 per share in fourth-quarter 2018 (ended Dec 29, 2018), up from 77 cents in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.14. Adjusted operating income increased 11.7% year over year to $127.1 million.
Advance Auto Parts reported net revenues of $2.1 billion, almost in line with the Zacks Consensus Estimate. Revenues were 3.3% higher than the year-ago quarter. During the quarter under review, comparable store sales were 3.4% higher year over year.
Gross profit was $928.6 million in the reported quarter, higher than the prior-year quarter figure of $873.6 million. Gross Profit margin increased 120 basis points year over year to 44.1%.
Adjusted selling, general and administrative (SG&A) expenses totaled $802.4 million compared with $759.9 million in the year-ago period.
2018 Results
For 2018, Advance Auto Parts reported adjusted earnings per share of $7.13, up from the 2017 figure of $5.37.
For 2018, revenues were $9.6 billion, up from the 2017 figure of $9.4 billion.
Financial Position
Advance Auto Parts had cash and cash equivalents of $896.5 million as of Dec 29, 2018, up from $546.9 million as of Dec 30, 2017. The total long-term debt was $1.05 billion as of Dec 29, 2018, higher than $1.04 billion as of Dec 30, 2017.
In fourth-quarter 2018, operating cash flow was $811 million, up 35% year over year.
Dividend & Share Repurchase
On Feb 11, 2019, Advance Auto Parts’ board approved a cash dividend of 6 cents per share to be paid as of Apr 5, 2019, for shareholders of record as of Mar 22, 2019.
On Aug 8, 2018, the board of directors authorized a $600-million share repurchase program, replacing the existing $500-million share repurchase program. Under this program, the company repurchased 1.7 million shares for $272.8 million in 2018. Subsequently, it also bought back 0.8 million common shares for $172.2 million. Presently, Advance Auto Parts has $200 million remaining under the share repurchase program.
Store Update
As of Dec 29, 2018, Advance Auto Parts operated 4,966 stores and 143 Worldpac branches, and served approximately 1,231 independently-owned Carquest stores.
Zacks Rank & Stocks to Consider
Advance Auto Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corp. (OSK - Free Report) , General Motors Company (GM - Free Report) , and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) . While Oshkosh currently sports a Zacks Rank #1 (Strong Buy), both General Motors and American Axle & Manufacturing has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 21.7%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 12.7%.
American Axle & Manufacturing has an expected long-term growth rate of 8.1%. Over the past three months, shares of the company have risen 44.8%.
Zacks’ Top 10 Stocks for 2019
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Advance Auto Parts, Inc. (AAP - Free Report) reported adjusted earnings of $1.17 per share in fourth-quarter 2018 (ended Dec 29, 2018), up from 77 cents in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.14. Adjusted operating income increased 11.7% year over year to $127.1 million.
Advance Auto Parts reported net revenues of $2.1 billion, almost in line with the Zacks Consensus Estimate. Revenues were 3.3% higher than the year-ago quarter. During the quarter under review, comparable store sales were 3.4% higher year over year.
Gross profit was $928.6 million in the reported quarter, higher than the prior-year quarter figure of $873.6 million. Gross Profit margin increased 120 basis points year over year to 44.1%.
Adjusted selling, general and administrative (SG&A) expenses totaled $802.4 million compared with $759.9 million in the year-ago period.
2018 Results
For 2018, Advance Auto Parts reported adjusted earnings per share of $7.13, up from the 2017 figure of $5.37.
For 2018, revenues were $9.6 billion, up from the 2017 figure of $9.4 billion.
Financial Position
Advance Auto Parts had cash and cash equivalents of $896.5 million as of Dec 29, 2018, up from $546.9 million as of Dec 30, 2017. The total long-term debt was $1.05 billion as of Dec 29, 2018, higher than $1.04 billion as of Dec 30, 2017.
In fourth-quarter 2018, operating cash flow was $811 million, up 35% year over year.
Dividend & Share Repurchase
On Feb 11, 2019, Advance Auto Parts’ board approved a cash dividend of 6 cents per share to be paid as of Apr 5, 2019, for shareholders of record as of Mar 22, 2019.
On Aug 8, 2018, the board of directors authorized a $600-million share repurchase program, replacing the existing $500-million share repurchase program. Under this program, the company repurchased 1.7 million shares for $272.8 million in 2018. Subsequently, it also bought back 0.8 million common shares for $172.2 million. Presently, Advance Auto Parts has $200 million remaining under the share repurchase program.
Store Update
As of Dec 29, 2018, Advance Auto Parts operated 4,966 stores and 143 Worldpac branches, and served approximately 1,231 independently-owned Carquest stores.
Zacks Rank & Stocks to Consider
Advance Auto Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corp. (OSK - Free Report) , General Motors Company (GM - Free Report) , and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) . While Oshkosh currently sports a Zacks Rank #1 (Strong Buy), both General Motors and American Axle & Manufacturing has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 21.7%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 12.7%.
American Axle & Manufacturing has an expected long-term growth rate of 8.1%. Over the past three months, shares of the company have risen 44.8%.
Zacks’ Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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