Advance Auto Parts stock surges 7% as Q4 results top estimates

Published 26/02/2025, 12:54
Advance Auto Parts stock surges 7% as Q4 results top estimates

NEW YORK -On Wednesday, Advance Auto Parts , Inc. (NYSE:AAP) the automotive parts retailer reported fourth quarter earnings and revenue that beat analyst expectations.

The result saw the company’s stock jump 7.17% in after-hours trading on Tuesday

The Raleigh, North Carolina-based company posted an adjusted loss per share of $1.18 for the fourth quarter, which was better than the $1.31 loss per share analysts were anticipating. Revenue came in at $2 billion, surpassing the consensus estimate of $1.93 billion.

"During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation," said Shane O’Kelly, president and chief executive officer.

For the full year 2024, Advance Auto Parts reported net sales of $9.1 billion, down 1.2% compared to 2023. Comparable store sales decreased 0.7% for the year.

Looking ahead, the company provided guidance for fiscal year 2025, projecting earnings per share between $1.50 and $2.50 on revenue of $8.4 billion to $8.6 billion. The midpoint of the EPS guidance range is above the current analyst consensus of $1.56.

Advance Auto Parts also announced it will pay a quarterly cash dividend of $0.25 per share on April 25, 2025 to shareholders of record as of April 11, 2025.

The better-than-expected quarterly results and upbeat outlook appear to be driving the positive investor reaction in after-hours trading. The company’s turnaround efforts and strategic initiatives will be key to watch going forward as it aims to improve profitability and growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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