Advance Auto Parts Inc AAP shares are trading lower Wednesday morning after the company reported worse-than-expected earnings results and cut full-year guidance.
Advance Auto said third-quarter revenue increased 0.8% year-over-year to $2.641 billion, which narrowly beat average analyst estimates of $2.64 billion, according to Benzinga Pro. The company said its top-line results were driven by improvements in strategic pricing and new stores.
Advance Auto reported quarterly earnings of $2.84 per share, which missed average estimates of $3.34 per share.
"2022 will be the second consecutive year that we have grown adjusted operating income margins in a highly inflationary environment. Our industry has proven to be resilient, and the fundamental drivers of demand remain positive," said Tom Greco, president and CEO of Advance Auto.
Advance Auto reiterated full-year guidance for net sales growth, comparable store sales and adjusted operating income margin. The company lowered its full-year adjusted earnings guidance from a range of $12.75 to $13.25 per share to a range of $12.60 to $12.80 per share.
Following the company's quarterly results, Wells Fargo analyst Zachary Fadem maintained Advance Auto with an Equal-Weight rating and lowered the price target from $200 to $180.
AAP Price Action: Advance Auto has a 52-week high of $244.55 and a 52-week low of $154.46.
The stock was down 14.7% at $156.99 Wednesday morning, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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