Advance Auto Parts Increases Sales but Misses Earnings Estimates
Advance Auto Parts (NYS: AAP) reported earnings on May 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 21 (Q1), Advance Auto Parts missed estimates on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased.
Gross margins dropped, operating margins expanded, net margins grew.
Advance Auto Parts reported revenue of $1.96 billion. The 15 analysts polled by S&P Capital IQ expected a top line of $2.01 billion on the same basis. GAAP-reported sales were 3.1% higher than the prior-year quarter's $1.9 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 $1.79. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.82 per share. GAAP EPS of $1.79 for Q1 were 33% higher than the prior-year quarter's $1.35 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 50.1%, 40 basis points worse than the prior-year quarter. Operating margin was 11.5%, 170 basis points better than the prior-year quarter. Net margin was 6.8%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is $1.52.
Next year's average estimate for revenue is $6.36 billion. The average EPS estimate is $5.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 236 members rating the stock outperform and 22 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 hold, with an average price target of $94.47.
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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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