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Advance Auto Parts (AAP) Misses Q3 Earnings and Revenues

Advance Auto Parts Inc. AAP is the largest automotive parts provider in North America, serving the "do-it-yourself" or "DIY", and "do-it-for me" or "DIFM" customers. It operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, light and heavy duty trucks.

Advance Auto Parts enhances profits through its relentless focus on store expansion. The company is poised to benefit as the auto industry continues to show stability with the increasing average age of vehicles, along with a rise in the number of miles driven. However, Advance Auto Parts faces challenges from rising new vehicle sales and price competition.

As a result, investors have been eagerly awaiting Advance Auto Parts' latest earnings report. Let's take a quick look at the company's second-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Advance Auto Parts for the third quarter have been mostly stable over the past week and month. The Zacks Consensus Estimate has remained static at $2.06 over these periods.

The company has delivered positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 0.40%.

Zacks Rank

Advance Auto Parts currently has a Zacks Rank #3 (Buy), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Advance Auto Parts reported earnings of $1.95 per share that missed the Zacks Consensus Estimate of $2.06. However, earnings were higher than $1.89 recorded in the year-ago quarter.

Revenues Miss Estimates

Advance Auto Parts logged revenues of $2.29 billion, missing the Zacks Consensus Estimate of $2.33 billion. Revenues were in line with $2.29 billion posted a year-ago.

Key Stats/Developments to Note

Advance Auto Parts envisions adjusted earnings per share in the range of $7.75-$7.90 in fiscal 2015. The company is planning to close 30 stores in the later part of 2015. These will lead to one-time expenses of $10-$15 million this year, taking the total expected one-time expenses to $101-$120 million.

Market Reaction

Advance Auto Parts' shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Advance Auto Parts' earnings report!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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