Advance Auto Parts Reports Stronger-Than Expected Adjusted Earnings

Fourth-quarter adjusted earnings were $1.64 a share, higher than expectations of $1.35.
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Advance Auto Parts  (AAP) - Get Report shares rose Tuesday after the do-it-yourself auto parts company reported stronger-than-expected adjusted earnings in its fiscal fourth quarter.

That figure came in at $1.64, up from $1.17 in the year-earlier quarter and above the average estimate of $1.35, according to Bloomberg. Fourth-quarter adjusted gross margin totaled 44%, down from 44.2% last year but above the average estimate of 43.9%.

Advance Auto Parts posted revenue of $2.11 billion in the fourth quarter, up 0.4% from a year earlier but below analysts’ estimate of $2.12 billion, according to Bloomberg.

“Advance once again delivered another quarter of net sales growth along with an acceleration of adjusted operating income growth amidst a challenging demand environment in Q4,” CEO Tom Greco said in a statement.

“Although sales growth was below our expectations, we grew adjusted operating margin by 106 basis points, which reinforces our team's commitment to delivering continuous, incremental improvement on the substantial margin expansion opportunity we have,” the CEO added.

Advance Auto Parts shares have fallen 8.2% over the past five years.

At last check, the stock traded at $142.21, up 6.45%.