Advance Auto Parts Beats Up on Analysts Yet Again
Advance Auto Parts (NYS: AAP) reported earnings on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Advance Auto Parts met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins improved.
Advance Auto Parts chalked up revenue of $1.33 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $1.33 billion on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $1.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.90. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share. GAAP EPS of $0.90 for Q4 were 58% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.0%, 40 basis points worse than the prior-year quarter. Operating margin was 8.4%, 180 basis points better than the prior-year quarter. Net margin was 5.0%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.00 billion. On the bottom line, the average EPS estimate is $1.74.
Next year's average estimate for revenue is $6.47 billion. The average EPS estimate is $5.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 225 members out of 248 rating the stock outperform, and 23 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Advance Auto Parts a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advance Auto Parts is outperform, with an average price target of $74.11.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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