Advance Auto Parts
said its profits more than doubled on stronger same-store sales in the first quarter.
A day after rival
posted better-than-expected results, Advance Auto Parts reported first-quarter net income of $12.1 million, or 34 cents a share, including charges relating to the integration of recently acquired Discount Auto Parts, compared with net income of $3.9 million, or 14 cents a share, in the year-ago quarter.
Excluding one-time charges, the company earned $19.3 million, or 55 cents a share. On that basis, analysts polled by Thomson Financial/First Call had been expecting 53 cents.
Sales for the quarter grew 37.7% to $1.004 billion, up from $729.4 million last year. Not including Discount Auto Parts stores, which saw same-store growth of 5.1%, same store sales at Advance Auto Parts grew 7.8%. The company also incurred charges of $10.6 million as part of its previously announced $40 million pretax integration expense relating to Discount Auto Parts.
The company said, "Our strong same store sales allowed us to leverage our fixed costs, resulting in a strong gain in our operating margins." Going forward, the company said it was comfortable with analyst estimates before integration expenses, which currently call for EPS of $2.40 for the full year.
Advance Auto Parts shares closed at $60.08 Wednesday before the news.