Advance Auto Parts earnings surge 24% in the second quarter

Aftermarket auto parts supplier Advance Auto Parts (AAP) delivered better-than-expected results in second-quarter of 2018, wherein both revenue and earnings topped analysts estimates. On an adjusted basis, the company reported EPS of $1.97, an increase of 24.7%. This was above analysts estimate of $1.86 a share.  On a GAAP basis, the company’s EPS increased 35.9% to $1.59.

The stock jumped 6% during premarket trading.

Total net sales during the quarter were $2.3 billion, a 2.8% increase versus the second quarter of the prior year. Analysts expected the company to post revenue of $2.26 billion. Comparable store sales for the second quarter of 2018 increased 2.8%.

On August 8, 2018, the Roanoke, Virginia-based company’s Board declared a regular quarterly cash dividend of $0.06 per share to be paid on October 5, 2018 to all common shareholders of record as of September 21, 2018.

Advance Auto Part updated its guidance for full-year 2018 and now expects revenue of about $9.3 billion to $9.5 billion. The increased revenue outlook is reflective of the improving industry trends, coupled with top-line growth, and better operational execution.

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As of July 14, 2018, the company opened 11 stores and branches and nearly 35 were closed or consolidated, resulting in a total of 5,159 stores and branches, compared to a total of 5,183 stores and branches as of December 30, 2017. To cater to the evolving need of customers, the company has been working towards expanding its footprint and widening its online presence.