Advance Auto Parts Q1 Profit Down; Cuts Annual Outlook; Stock Down 25% In Pre-market

(RTTNews) - Advance Auto Parts, Inc. (AAP), an automotive aftermarket parts provider, Wednesday reported lower profit in the first quarter, primarily due to higher expenses. The company also cut its full-year outlook. Following the news, the stock is down 25% in pre-market trade.

"Given the shortfall experienced this quarter, along with our revised outlook for the balance of the year, we are reducing our full-year 2023 guidance. In addition, our board of directors made the decision to reduce our quarterly cash dividend to provide enhanced financial flexibility," commented Jeff Shepherd, executive vice president and chief financial officer.

Net profit was $42.65 million or $0.72 per share for the first quarter, lower than $139.79 million or $2.26 per share in the same quarter a year ago. Analysts on average polled by Thomson-Reuters were expecting an earnings of $2.57 per share. Analysts' estimates typically exclude special items.

Sales for the quarter, however, increased 1.3% to $3.418 billion from $3.374 billion last year. The consensus estimate was for $3.43 billion.

Looking forward, the company now expects full-year earnings per share to be in the range of $6.00-$6.50, lower than the prior outlook of $10.20-$11.20.

Sales for the year is now expected between $11.2 billion and $11.3 billion, lower than $11.4 billion-$11.6 billion guided earlier.

Analysts expect the company to report earnings of $10.64 per share on revenue of $11.43 billion for the year.

Advance Auto Parts shares closed at $112.20, up 0.04% on Tuesday. It has traded in the range of $109.05 - $212.25 in the last 1 year.