Quantcast
Jump to content
  • Welcome to Auto Parts Forum

    Thanks for visiting our brand new online forum for automotive parts. We are just starting to build content and invite you to join us here in our new online discussion forum for automotive parts topics.  Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even do it with social network platforms such as Facebook, Twitter, Google, and LinkedIn.  

partsman

Advance Auto Parts: What Just Happened?!?!

Recommended Posts

The earnings came out today and the stock dropped... Barron's article: http://www.barrons.com/articles/advance-auto-parts-what-just-happened-1502806791

A big earnings missed combined with disappointing guidance have caused shares of Advance Auto Parts to lose a fifth of their value this morning.

By Ben Levisohn Aug. 15, 2017 10:19 a.m. ET

Advance Auto Parts (AAP) was trying to get its engine started heading into its earnings report this morning. Instead, it's stalled once again.

Advance Auto Parts had gained 7% during the past month at the close of trading. but then it released its second-quarter financial results. Advance reported a profit of $1.58 a share, missing forecasts for $1.65, on sales of $2.26 billion, in-line with analyst expectations. And while its same-store sales were flat--beating expectations for a 0.2% second-quarter decline--Advance now expects comparable-store sales to drop between 1% and 3% this year, below expectations for a 0.5% decline.

Guggenheim's Steven Forbes and team explain why they "remain on the sidelines" following Advance's results:

Since our initiation in January, we have believed that simultaneously driving both improved top-line and bottom-line momentum was an overly optimistic outlook given the amount of reinvestment needed to reposition the business for long-term success. In our view, the industry headwinds that have been highlighted by AAP's public peers will only further complicate the margin dynamics associated with the company's recovery. As a result, we remain on the sidelines and await additional color around the impact these headwinds will have on the company's ability to flow-through the productivity initiatives it laid out earlier this year.

Now, shares of Advance Auto Parts are in freefall--and taking its competitors with it. Shares of Advance have plunged 20% to $87.19 at 10:02 a.m. today, while O'Reilly Automotive (ORLY) has fallen 2.9% to $192.70, and AutoZone (AZO) has dropped 3.7% to $505.93.

 
  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×

Copyright © 2018 AutoPartsForum.com Powered by Invision Community