Advance Auto Parts, Inc. (AAP) reported earnings below expectations for the second quarter of 2022 this afternoon.
Wall Street’s earnings per share (EPS) projections for Advance Auto Parts Inc were $3.76. The company missed those estimates with EPS of $3.74. Earnings per share of $3.74 (representing a -1% EPS surprise) drove the company’s earnings up 10% from last year, when the company reported EPS of $3.40. The increase in Advance Auto Parts Inc.’s annual growth rate represents the company’s good performance in recent economic conditions.
Consensus analyst estimates were $2.8 billion. Consumer Cyclical fell short of those expectations for its second quarter with revenue of $2.7 billion, a negative surprise of $85 million (3%). The company managed 1% year-over-year growth as Advance Auto Parts Inc reported quarterly revenue of $2.6 billion in its US quarter. last year. Advance Auto Parts Inc achieved a higher earnings growth rate than revenue, signaling that the company improved its profit margin.
The stock is down 9.27% at $180.67 after the report.
Advance Auto Parts Inc’s profits grew faster than revenues, signaling an increase in profit margins.
Wall Street analysts had an average buy rating on the stock ahead of the report.
Trading in the five days leading up to the report earned Advance Auto Parts Inc a bearish sentiment ranking of InvestorsObserver.
Advance Auto Parts Inc has performed slightly above average over the past few months. Prior to the report, Advance Auto Parts Inc received a long-term technical ranking by InvestorsObserver of 60, placing it in the top half of the stock. The company was recently trading at a 52-week low of $164 on June 17, 2022 and set a 52-week high on January 5, 2022 at $244.55.
Advance Auto Parts is one of the industry‘s largest retailers of auto parts, tools and accessories for DIY customers in North America. Advance operated 4,972 stores at the end of 2021, in addition to serving 1,317 independent Carquest stores. The company’s Worldpac unit is a leading distributor of imported original equipment parts. Advance made 58% of its sales in 2021 from commercial customers, compared to 30% to 40% before the agreement with General Parts.
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