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

Here’s a look at Dollar Tree’s (DLTR) expectations for the remainder of the year

Shares of Dollar Tree Inc. (NASDAQ: DLTR) were down over 1% on Wednesday, a day after the company reported earnings results for the third quarter of 2022. Revenue and earnings

Target Corporation (TGT): A look at how the retail giant is shaping up against an inflationary backdrop

Shares of Target Corporation (NYSE: TGT) were up over 1% on Wednesday. The stock has dropped 30% year-to-date and 35% over the past 12 months. Last week the company reported

Is Zoom Video Communications (ZM) a good investment after Q3 earnings?

Zoom Video Communications (NASDAQ: ZM) expanded its customer base at an accelerated pace during the COVID crisis and soon became the preferred video conferencing platform for businesses and millions of


Add Comment
Viewing Highlight