Advance Auto Parts Inc. AAP reported adjusted earnings of $1.43 per share in the third quarter of fiscal 2017 (ended Oct 7), declining 17.3% from $1.73 in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of $1.22. Adjusted operating income declined to $172.2 million from $217.6 million in the third quarter of fiscal 2016.
Advance Auto Parts reported revenues of $2.18 billion, missing the Zacks Consensus Estimate of $2.21 billion. Revenues were 3% lower than the year-ago quarter figure. During the quarter, comparable store sales (comps) were down 3.4% year over year.
Gross profit declined to $947.7 million in the reported quarter from $988.2 million a year ago. Gross margin declined 51 basis points year over year to 43.4%.
Adjusted selling, general and administrative (SG&A) expenses totaled $775.5 million or 35.5% of sales compared with $770.6 million or 34.3% in the year-ago period.
On Nov 7, 2017, the board of directors of Advance Auto Parts announced a regular quarterly dividend of 6 cents per share. The dividend will be paid on Jan 5, 2018, to stockholders on record as of Dec 22, 2017.
Advance Auto Parts had cash and cash equivalents of $363.3 million as of Oct 7, 2017, up from $135.2 million as of Dec 31, 2016. Total long-term debt was $1.04 billion as of Oct 7, 2017, almost unchanged from the Dec 31, 2016 figure.
For the fiscal third quarter, operating cash flow was $401 million compared with $427 million in the year-ago period.
As of Oct 7, 2017, Advance Auto Parts operated 5,074 stores and 129 Worldpac branches and served approximately 1,250 independently owned Carquest stores.
Advance Auto Parts currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks worth considering are Allison Transmission Holdings, Inc. ALSN, PACCAR Inc PCAR and Cummins Inc. CMI. While Allison Transmission Holdings and PACCAR sport a Zacks Rank #1 (Strong Buy), Cummins carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission Holdings has a long-term growth rate of 10%.
PACCAR has a long-term growth rate of 10%.
Cummins has an expected long-term earnings-per-share growth rate of 12.1%.
Advance Auto Parts Inc Price, Consensus and EPS Surprise
Advance Auto Parts Inc Price, Consensus and EPS Surprise | Advance Auto Parts Inc Quote
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