Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Advance Auto Parts Misses Where it Counts

Advance Auto Parts (NYSE: AAP  ) reported earnings on Aug. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 14 (Q2), Advance Auto Parts met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted.

Gross margins expanded, operating margins dropped, net margins contracted.

Revenue details
Advance Auto Parts logged revenue of $1.46 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $1.48 billion on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $1.48 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.34. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.40 per share. GAAP EPS of $1.34 for Q2 were 8.2% lower than the prior-year quarter's $1.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 49.9%, 20 basis points better than the prior-year quarter. Operating margin was 11.6%, 120 basis points worse than the prior-year quarter. Net margin was 6.8%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $1.35.

Next year's average estimate for revenue is $6.28 billion. The average EPS estimate is $5.34.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 239 members out of 263 rating the stock outperform, and 24 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Advance Auto Parts a green thumbs-up, and seven 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 $82.06.

If you're invested in retailers like Advance Auto Parts, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1984325, ~/Articles/ArticleHandler.aspx, 4/23/2017 4:09:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...