Shares of Advance Auto Parts (AAP) - Get Report revved lower on Tuesday after the company reported second-quarter earnings and sales that missed analysts' forecasts amid slower revenue as well as higher costs associated with inventory stocking.
The Raleigh, N.C.-based company said it earned $124.82 million, or $1.73 a share, in the second quarter, vs. $117.84 million, or $1.59 a share, in the comparable year-ago quarter. On an adjusted basis, the company earned $144.06 million, or $2 a share, well below the $2.22 a share expected by analysts polled by FactSet.
Revenue came in at $2.33 billion, equal to the mark posted in the same period last year though also below analysts' forecasts of $2.4 billion. Comparable-store sales were flat for the quarter.
"We are confident that despite short-term headwinds in the second quarter, which caused volatility in our financial results, we will deliver meaningful progress against our transformation plan in 2019," Chief Financial Officer Jeff Shepherd said in a statement.
The company also provided slightly lower guidance for the remainder of the year, lowering its net sales outlook to between $9.65 billion and $9.75 billion from between $9.65 billion and $9.8 billion. It also reduced comparable same-store sales forecasts to between 1% and 2% from between 1% and 2.5%.
Separately, the company announced a $400 million share repurchase program.
Shares of Advance Auto Parts were down 1.83% at $139.50 in late morning trading on Tuesday. Earlier they were down as much as 4.11%, or $5.84 a share, at $136.31.