Advance Auto Parts stock falls after earnings beat, but same-store sales miss
Shares of Advance Auto Parts Inc. sank 4.8% in premarket trading Tuesday, after the auto parts retailer reported third-quarter profit and revenue that beat expectations but same-store sales that missed. Net income rose $123.7 million, or $1.75 a share, from $115.8 million, or $1.56 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS was $2.10, above the FactSet consensus of $2.06. Sales grew 1.6% to $2.31 billion, above the FactSet consensus of $2.30 billion, but same-store sales growth of 1.2% missed expectations of a 1.3% increase. Gross profit margin declined 39 basis points (0.39 percentage points) to 43.9% of sales, due primarily to an increase in coupon redemptions. For 2019, the company affirmed its sales guidance range of $9.65 billion to $9.75 billion but lowered its same-store sales outlook to 1.0% to 1.5% from 1.0% to 2.0%. The stock has run up 18.8% over the past three months while the S&P 500 has gained 7.1%.
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