By Senad Karaahmetovic
Advance Auto Parts Inc (NYSE:AAP) shares are moving higher in pre-market Tuesday trading after the company reported better-than-expected fourth-quarter results and offered solid guidance.
Advance Auto reported adjusted EPS of $2.88 on revenue of $2.47 billion, beating the analyst consensus for earnings of $2.43 on sales of $2.42B. Comparable sales grew 2.1% year-over-year, a positive surprise given that analysts were expecting a decline of 1.4%.
For FY2023, the company expects revenue of $11.4B to $11.6B, beating the consensus of $11.34B. Comparable sales are expected to increase by 2% YoY (up or down 1%), again higher than the average analyst estimate of +1.43%. Full-year EPS is seen between $10.20 and $11.20.
“We expect to see further improvements in inventory availability throughout 2023, which we view as the single most important driver to accelerate topline growth," CEO Tom Greco said in a press release.
Moreover, Advance Auto announced that Mr. Greco will retire at the end of the year. The company said it has formed a Succession Committee to assist in a CEO search that considers both internal and external candidates.