Advance Auto Parts: The Long-Term Goals Even More Impressive Than The Q3 Beat

Advance Auto Parts, Inc. AAP is up a whopping 15 percent following an impressive third-quarter earnings beat on both the top and bottom lines.

Even more impressive than the third-quarter results is the automotive part supplier’s future guidance. Despite a strong quarter, at an investor meeting, Advance Auto Parts CEO Tom Greco and chief financial officer Tom Okray expressed their determination to continue the momentum moving forward.

“While we delivered sequential improvement, our results are not where we want them to be and we remain relentlessly focused on taking the actions necessary to improve our execution and generate positive comparable sales performance,” said Greco.

Bank of America said the company’s long-term goals were the “best part” of the quarter after attending an investor meeting that outlined the company’s five-year strategic plan. The plan includes at least $500 million in productivity improvements, as well as an objective to attain above-market top-line growth.

Comps were much better than expected in Q3 for Advance Auto Parts, which led Bank of America to reiterate its Buy rating and raise its price objective.

At last check, Advance Auto Parts shares were up 14.63 percent at $163.80.