Advance Auto Parts, Inc. ( AAP Quick Quote AAP - Free Report) reported adjusted earnings of $3.34 per share for first-quarter 2021 (ended Apr 24, 2021), skyrocketing 234% from the prior-year figure. The reported figure also beat Zacks Consensus Estimate of $3.08 on higher-than-expected comps growth. For the first quarter, comparable store sales increased 24.7%, outpacing the consensus mark of 13.33% growth.
Advance Auto Parts generated net revenues of $3,330.4 million, topping the Zacks Consensus Estimate of $3,314.4 million. Moreover, the revenue figure increased 23.4% from the year-ago reported figure.
Adjusted operating income climbed 164% year over year to $298.8 million. Adjusted selling, general and administrative expenses totaled $1,232.8 million compared with $1,094.3 million witnessed in the year-ago quarter.
Advance Auto Parts — which shares space with
O’Reilly Automotive ( ORLY Quick Quote ORLY - Free Report) , AutoZone ( AZO Quick Quote AZO - Free Report) and CarMax ( KMX Quick Quote KMX - Free Report) — had cash and cash equivalents of $880.2 million as of Apr 24, 2021 compared with $834.9 million as of Jan 2, 2021. Total long-term debt was $1,033 million as of Apr 24, 2021, essentially unchanged from the fourth quarter.
Operating cash flow jumped to $329.9 million from the year-ago figure of $10.9 million. Free cash flow (FCF) came in at $259 million versus the year-ago negative FCF of $72.1 million.
Dividend & Share Repurchase
In April, Advance Auto Parts’ board approved a cash dividend of $1 per share, indicating a significant uptick from 25 cents. The dividend would be payable on Jul 2 to all common shareholders of record as of Jun 18, 2021. It also approved an additional buyback program of $1 billion. During the quarter, the company repurchased around 1.1 million shares for $170.4 million at an average price of $157.84 per share.
Advance Auto Parts returned $204 million to shareholders through buybacks and dividend in the quarter under review. At the end of first-quarter 2021, the company had $1.3 billion remaining under the share-repurchase program.
As of Apr 24, it operated 4,971 stores and 178 Worldpac branches in the United States, Canada, Puerto Rico and U.S. Virgin Islands. It also serves 1,285 independently-owned Carquest-branded stores across these locations, in addition to Mexico, the Bahamas, Grand Cayman, Turks and Caicos, and British Virgin Islands.
Guidance for 2021
Advance Auto Parts raised full-year 2021 view. It now projects full-year 2021 net sales of $10.4-$10.6 billion, up from previous forecast of $10.2-$10.4 billion. Comparable store sales growth and adjusted operating income margin are now envisioned in the band of 4-6% and 9-9.2%, respectively. The Zacks Rank #2 (Buy) company expects FCF of minimum $575 million. It intends to open 100-150 stores this year. You can see
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