Categories Earnings

Advance Auto Parts Q2 earnings to be boosted by recent initiatives

The aftermarket auto parts supplier Advance Auto Parts (AAP) is scheduled to report its second-quarter 2018 earnings on August 14 before the market opens. Analysts expect the company to report earnings of $1.86 a share and revenue of $2.26 billion.

In the first quarter, the company’s revenue failed to meet analysts’ expectations. Revenues came in at $2.87 billion, down 0.6% year over year. Earnings surged 31% to $2.10 per share, and surpassed analysts’ estimate.

When announcing the first quarter results, CEO Tom Greco stated that the company expects some improvement in Q2 sales, mainly due to rise in the customer demand in May.

With minor differences in business model, Advance Auto Parts’ competitor O’Reilly Auto Parts (ORLY) has been performing well. The Springfield, Missouri-based company reported an increase in sales and gross profit for its first quarter. AAP is making initiatives to get closer to O’Reilly.

RELATED: Advance Auto Parts shares fall after 1Q sales miss

In April, Advance Auto Parts entered into a partnership with Uber Technologies to become an exclusive after-market auto parts supplier for the Uber Visa Debit Card program for driver partners. AAP hopes that this new partnership will drive DIY traffic of its stores and websites. To cater to the evolving need of customers, the company is undertaking several initiatives to streamline its supply chain. The Roanoke, Virginia-based auto parts retailer has been working towards expanding its footprint by opening new stores and widening its online presence.

With a market cap of $10.84 billion, the company currently has a consensus rating of “Hold”. The stock has been trading between $78.81 and $148.70 in the past one year. Shares of AAP, which hit a new yearly high ($148.70) on August 9, were down about 1% towards the end of Monday’s trading session.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard


Add Comment
Viewing Highlight