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Advance Auto Parts Stock Eases on Cautious Second-Half Outlook

Advance Auto Parts raised its fiscal-year revenue guidance but noted potential for volatility.
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Shares of Advance Auto Parts  (AAP) - Get Free Report were lower after the retailer topped analysts' earnings estimate for the fiscal second quarter but was cautious about its second-half prospects. 

At last check the stock was off 0.6% at $206.50.

The Raleigh, N.C., company raised the bottom end of its revenue outlook for the fiscal year but noted "potential for volatility" in the period.

For the second quarter ended July 17, Advance earned an adjusted $3.40 a share. Net sales rose nearly 6% from a year earlier to $2.65 billion. 

Analysts were expecting adjusted earnings of $3.04 a share on revenue of $2.65 billion, according to FactSet. 

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The company now expects net sales between $10.6 billion and $10.8 billion for the full year after previously expecting $10.4 billion to $10.8 billion.

For the year it now expects same-store sales to rise 6% to 8%. Its previous forecast was 4% to 6%. It plans to open 80 to 120 stores instead of 100 to 150. 

The company said its second quarter top-line increase was led by a recovery in miles driven by vehicles as pandemic lockdowns eased over the summer and American's took to the roads. 

Comparable-store sales increased 5.8% year over year. Over two years, same-store sales rose 13.3%. 

In 2021 through the end of the fiscal second quarter, free cash flow increased 70% compared with 2019, to $646.6 million.