Advance Auto Parts Posts Downbeat Q1 Earnings, Lowers FY15 Forecast

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Shares of
Advance Auto Parts, Inc.
AAP
dropped more than 3 percent in pre-market trading after the company reported weaker-than-expected earnings for the first quarter and lowered its earnings forecast for the year. The Roanoke, Virginia-based company reported a quarterly profit of $148.1 million, or $2 per share, compared to $147.7 million, or $2.01 per share, in the year-ago period. Excluding non-recurring items, the company's comparable cash earnings rose 6.2 percent to $2.39 per share. Its revenue gained 2.3 percent year-over-year to $3.04 billion from $2.97 billion. However, analysts were expecting earnings of $2.48 per share on revenue of $3.05 billion. The average estimate among 6 Estimize users was for earnings of $2.52 per share and revenue of $3.07 billion. Its comparable store sales rose 0.7 percent in the quarter. Gross profit rate for the quarter widened to 45.9 percent of sales, versus 45.6 percent in the year-ago quarter. Its comparable operating income rose 8.4 percent year-over-year to $308.3 million during the first quarter. "Our first quarter results were softer than we expected primarily driven by the change impacts of our integration activities," said Mike Norona, Executive Vice President and Chief Financial Officer. "Despite the softness, we were pleased that we delivered our synergy expectations and grew our Comparable Operating Income 8.4%." For the full year, Advance Auto Parts now projects earnings of $8.10 to $8.30 per share, versus earlier forecast of $8.35 to $8.55 per share. Analysts expect earnings of $8.51 per share. The company now projects full-year comparable store sales to be at the low end of its earlier issued range. Advance Auto Parts shares fell 3.48 percent to $144.68 in pre-market trading.
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Posted In: EarningsNewsGuidanceprofit
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