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.