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Advance Auto (AAP) Q4 Earnings & Revenues Miss Estimates
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Advance Auto Parts, Inc. (AAP - Free Report) incurred an adjusted loss of 59 cents per share for fourth-quarter 2023 against an adjusted earnings of $2.88 in the year-ago quarter. The reported figure was also in contrast to the Zacks Consensus Estimate of earnings of 24 cents per share.
Advance Auto generated net revenues of $2.46 billion, which missed the Zacks Consensus Estimate of $2.47 billion on lower-than-expected comparable store sales. Comparable store sales decreased 1.4% year over year. We projected a decline of 0.5% for the same. The top line dipped 0.4% year over year.
Advance Auto reported an operating loss of $48.6 million against the operating income of $119.3 million recorded in the corresponding quarter of 2022. SG&A expenses totaled $999.4 million for fourth-quarter 2023, up 4.4% year over year.
AAP had cash and cash equivalents of $503.5 million as of Dec 30, 2023 compared with $270.8 million as of Dec 31, 2022. Total long-term debt was $1.79 billion as of Dec 30, 2023, up from $1.19 billion as of Dec 31, 2022. From January through the fourth quarter of 2023, net cash provided by operating activities and free cash flow totaled $286.1 million and $43.7 million, respectively.
AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Apr 26, 2024, to all common shareholders of record as of Apr 12, 2024.
As of Dec 30, 2023, AAP operated 4,786 stores and 321 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,245 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
Advance Auto expects 2024 net sales in the band of $11.30-$11.40 billion, up from $11.29 billion reported in 2023. Comparable store sales are projected in the range of 0% to 1%. The operating income margin is envisioned in the range of 3.2-3.5%.
AAP expects 2024 capex in the range of $200-$250 million. The company projects a minimum free cash flow of $250 million. Earnings per share (EPS) are expected between $3.75 and $4.25, up from the earnings of 50 cents reported in 2023.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimate for 2024 has improved 22 cents in the past 30 days. The EPS estimate for 2025 has improved 11 cents in the past seven days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.16 and $1.50, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 85 cents and 71 cents, respectively, in the past 30 days.
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Advance Auto (AAP) Q4 Earnings & Revenues Miss Estimates
Advance Auto Parts, Inc. (AAP - Free Report) incurred an adjusted loss of 59 cents per share for fourth-quarter 2023 against an adjusted earnings of $2.88 in the year-ago quarter. The reported figure was also in contrast to the Zacks Consensus Estimate of earnings of 24 cents per share.
Advance Auto generated net revenues of $2.46 billion, which missed the Zacks Consensus Estimate of $2.47 billion on lower-than-expected comparable store sales. Comparable store sales decreased 1.4% year over year. We projected a decline of 0.5% for the same. The top line dipped 0.4% year over year.
Advance Auto reported an operating loss of $48.6 million against the operating income of $119.3 million recorded in the corresponding quarter of 2022. SG&A expenses totaled $999.4 million for fourth-quarter 2023, up 4.4% year over year.
AAP had cash and cash equivalents of $503.5 million as of Dec 30, 2023 compared with $270.8 million as of Dec 31, 2022. Total long-term debt was $1.79 billion as of Dec 30, 2023, up from $1.19 billion as of Dec 31, 2022. From January through the fourth quarter of 2023, net cash provided by operating activities and free cash flow totaled $286.1 million and $43.7 million, respectively.
AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Apr 26, 2024, to all common shareholders of record as of Apr 12, 2024.
As of Dec 30, 2023, AAP operated 4,786 stores and 321 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,245 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
Advance Auto expects 2024 net sales in the band of $11.30-$11.40 billion, up from $11.29 billion reported in 2023. Comparable store sales are projected in the range of 0% to 1%. The operating income margin is envisioned in the range of 3.2-3.5%.
AAP expects 2024 capex in the range of $200-$250 million. The company projects a minimum free cash flow of $250 million. Earnings per share (EPS) are expected between $3.75 and $4.25, up from the earnings of 50 cents reported in 2023.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. Quote
Zacks Rank & Key Picks
AAP currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , General Motors Company (GM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimate for 2024 has improved 22 cents in the past 30 days. The EPS estimate for 2025 has improved 11 cents in the past seven days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.16 and $1.50, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 85 cents and 71 cents, respectively, in the past 30 days.