Advance Auto Parts
said Thursday that its third-quarter earnings fell 3.1%.
The Roanoke, Va.-based company earned $58.95 million, or 56 cents a share, in the quarter, compared with $60.80 million, or 55 cents a share, a year ago. The latest quarter results include stock option expenses of 3 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 53 cents a share.
Third-quarter revenue rose 7.8% to $1.1 billion as against analysts' expectation of $1.09 billion. Comparable-store sales increased 1.4% in the quarter, comprising a 0.6% decrease in do-it-yourself and an 8.7% increase in do-it-for-me.
For the fourth quarter, the company expects to earn 33 cents to 37 cents a share, including stock option expenses of 3 cents a share. Analysts anticipate earnings of 36 cents a share in the fourth quarter.
For 2007, the company anticipates new-store growth in the range of 7% to 8%. In addition, the company expects to remodel about 150 stores and relocate about 40 existing stores.
"These results reflect our initiatives to drive sales and enhance customer satisfaction, which are gaining traction," said the company. "We believe that by focusing on superior customer service, we can achieve much-better financial performance, and we are committed to achieving it."
The company's shares were trading up $1.73, or 5.02%, at $36.19 Thursday.
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