Advance Auto Parts, Inc. (AAP - Free Report) reported adjusted earnings of $2 per share in second-quarter 2019 (ended Jul 13, 2019), up 1.5% from the prior-year quarter’s level. The figure missed the Zacks Consensus Estimate of $2.22. Adjusted operating income declined 4.3% year over year to $196.4 million.
Advance Auto Parts generated net revenues of $2.33 billion, which missed the Zacks Consensus Estimate of $2.35 billion. Revenues were 0.2% higher than the year-ago quarter’s tally. During the quarter under review, comparable store sales were flat year over year.
Operating income inched up 1.9% year over year to $170.8 million in the reported quarter. Adjusted operating income margin declined 40 basis points year over year to 8.4% of net sales.
Adjusted selling, general and administrative (SG&A) expenses totaled $813 million compared with $811 million in the year-ago quarter.
Advance Auto Parts had cash and cash equivalents of $747.7 million as of Jul 13 compared with $896.5 million as of Dec 29, 2018. Total long-term debt was $746.9 million as of Jul 13 compared with $1.05 billion as of Dec 29, 2018.
In second-quarter 2019, operating cash flow was $492.2 million, up from $440 million in the prior-year quarter.
Dividend & Share Repurchase
On Aug 7, 2019, Advance Auto Parts’ board approved cash dividend of 6 cents per share to be paid on Oct 4, 2019 to all common shareholders of record as of Sep 20, 2019.
On Aug 7, 2019, the board of directors authorized a $400-million share repurchase program, replacing the remaining portion of the company's $600-million share repurchase program that was authorized in August 2018.
As of Jul 13, the company operated 4,912 stores and 150 Worldpac branches as well as served approximately 1,250 independently-owned Carquest branched stores.
Zacks Rank & Stocks to Consider
Currently, Advance Auto Parts hold a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Fox Factory Holding Corp (FOXF - Free Report) , CarMax, Inc (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has an expected long-term growth rate of 16.7%. In the past six months, shares of the company have rallied 22.8%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have surged 36.2%.
Gentex has an expected long-term growth rate of 5%. In the past six months, shares of the company have returned 36.8%.
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