Advance Auto Parts (NYSE: AAP) reported first-quarter adjusted earnings of $2.46 per share, up 17% year-over-year, surpassing the Wall Street consensus of $2.36 per share. Net sales for the quarter improved 2.7% to $2.95 billion, slightly higher than $2.94 billion projected by analysts.
The top line was spurred by a 2.7% growth in comparable sales.
AAP shares ended its last trading session 1.68% in green on Tuesday. In the past 12 months, the stock has gained almost 40%.
Adjusted profit margin saw a 37 basis points improvement, primarily driven by favorable product margin and improved inventory management.
CEO Tom Greco said, “Our free cash flow improved by nearly 20% as a result of our continued disciplined approach to cash management. The early progress against our strategic transformation agenda is becoming more evident throughout our culture and in our improving results.”
The company also reaffirmed its outlook for full-year 2019. The North Carolina-based company expects net sales between $9.65 billion and $9.8 billion, with comp sales increase projected in the range of 1% to 2.5%.
Rival AutoZone (NYSE: AZO) yesterday reported better-than-expected earnings and sales for the third quarter of 2019, aided by strong comparable store sales. The company’s stock gained nearly 3% following the announcement.