Advance Auto Parts Inc. (AAP): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Advance Auto Parts witnessed a 35.5% rise in adjusted comparable earnings to $2.25 per share in the first quarter of fiscal 2014, exceeding the Zacks Consensus Estimate by $0.09. Revenues went up 47.3% year over year to $2.97 billion, but missed the Zacks Consensus Estimate of $2.99 billion. Sales benefited from the acquisition of General Parts, increased comparable same-store sales and new stores in the last 12 months. Advance Auto Parts raised its guidance for 2014 comparable cash earnings per share to $7.30 $7.50. Store expansion and benefits from acquisitions are other positives. Thus, we have maintained an Outperform recommendation on the stock.
Advance Auto Parts, Inc. operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, maintenance items, batteries and maintenance items for cars, vans, sport utility vehicles and light trucks. It is the second leading retailer catering to the "do-it-yourself" or DIY and "do-it-for me" or DIFM (or Commercial) customers.
Advance Auto Parts operates under two reportable segments: Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment consists of stores in the U.S., Puerto Rico, and the Virgin Islands under the trade names Advance Auto Parts and Advance Discount Auto Parts. The AI segment, an acquired business, operates as an independent and wholly owned subsidiary of the company. It provides automotive replacement parts to the DIFM market as well as to warehouse distributors and jobbers in the North American market.
As of Apr 19, 2014, Advance Auto Parts' total store count was 5,276, including 216 Autopart International stores. Additionally, the company had 105 Worldpac branches.
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