Advance Auto Parts Inc. (NYSE:AAP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Advance Auto Parts Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 18.66% to $1.59 in the quarter versus EPS of $1.34 in the year-earlier quarter.
Revenue: Rose 6.07% to $1.55 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Advance Auto Parts Inc. reported adjusted EPS income of $1.59 per share. By that measure, the company beat the mean analyst estimate of $1.48. It missed the average revenue estimate of $1.6 billion.
Quoting Management: “Our sales grew 6.1% and operating income increased 15.1% in the second quarter. We are pleased with our profit improvement despite our comparable store sales being essentially flat,” said Darren R. Jackson, Chief Executive Officer. “The positive comparable sales growth at the start of the quarter was offset by weaker demand in the balance of the quarter including sales shortfalls in key seasonal categories. While the macroeconomic environment continued to impact our customers we continue to be encouraged by the strong long-term fundamentals of our industry and remain focused on improving our sales performance as we continue to improve our profitability.”
Key Stats (on next page)…
Revenue decreased 23.11% from $2.02 billion in the previous quarter. EPS decreased 3.64% from $1.65 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.38 to a profit $1.35. For the current year, the average estimate has moved down from a profit of $5.53 to a profit of $5.48 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)