RICHMOND, Va. (AP) -- Car parts retailer Advance Auto Parts said Thursday its fourth-quarter profit jumped 38 percent as sales improved and expenses fell.
The Roanoke, Va.-based seller of aftermarket auto parts and batteries said Thursday that it earned $66.4 million, or 90 cents per share, for the three-month period ended Dec. 31. That's up from $48.1 million, or 57 cents per share, a year ago. Revenue rose 4.5 percent to $1.33 billion.
Analysts polled by FactSet expected a profit of 74 cents per share on revenue of $1.32 billion.
Shares rose $6.59, or 8.3 percent, to $85.99 in afternoon trading.
Sales at stores open at least a year rose nearly 3 percent. That's an important measure for retailers because it excludes results from newly opened or closed stores.
The company, which operates about 3,660 stores in the U.S., Puerto Rico and the Virgin Islands, opened 19 stores and closed two locations during the quarter.
For the year, Advance Auto Parts earned $394.7 million, or $5.11 per share, up from $346 million, or $3.95 per share. Revenue rose 4 percent to $6.17 billion as same-store sales increased more than 2 percent. It had a net increase of 99 stores during the fiscal year.
Advance Auto Parts has been focused on streamlining and simplifying its organization to reduce costs and minimize the impact to sales and service levels.
When vehicle sales tumbled a few years ago, auto parts retailers such as Advance Auto Parts got a sales boost, as more Americans kept their vehicles longer and invested more in keeping them running.
In the short term, the industry is expected to benefit from the rising average age of vehicles on the road, which should lift do-it-yourself sales. But rising gas prices — and the slow economic recovery — will likely have a negative impact on growth, CEO Darren R. Jackson said in a conference call with investors.
"Our economy continues to be tempered with high unemployment and low consumer confidence," Jackson said. "As a result, we expect to see an economy of necessity where consumers will continue to favor and seek value through local garages or performing needed repairs themselves."
Advanced also said it expects full-year 2012 profit between $5.55 and $5.75 per share.
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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum .
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