Advance Auto Parts Inc AAP shares are trading lower Wednesday after the company reported worse-than-expected financial results and cut guidance below analyst estimates.
Advance Auto Parts said second-quarter revenue increased 0.6% year-over-year to $2.67 billion, which missed average analyst estimates of $2.75 billion, according to Benzinga Pro. The company reported quarterly earnings of $3.74 per share, which missed average analyst estimates of $3.77 per share.
Advance Auto Parts said comparable store sales decreased 0.6% year-over-year.
"Our DIY omnichannel sales were particularly challenged in the quarter and we expect that high inflation and significant year over year increases in fuel prices will continue to pressure DIY consumers in the back half of the year. As a result, we are updating our 2022 full year guidance," said Tom Greco, president and CEO of Advance Auto Parts.
The company said it now expects full-year revenue to be between $11 billion and $11.2 billion versus average analyst estimates of $11.34 billion. The updated revenue guidance is down from a previous range of $11.2 billion to $11.5 billion.
Advance Auto Parts lowered its full-year earnings guidance from a range of $13.30 to $13.85 per share to a range of $12.75 to $13.25 per share.
- Wedbush analyst Seth Basham maintained Advance Auto Parts with an Outperform and lowered the price target from $215 to $200.
- UBS analyst Michael Lasser maintained Advance Auto Parts with a Buy and lowered the price target from $250 to $230.
AAP Price Action: Advance Auto Parts has a 52-week high of $244.55 and a 52-week low of $164.
The stock was down 10.8% at $177.64 at time of publication.
Photo: Mike Mozart from Flickr.
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