Advance Auto Parts Inc.’s stock
AAP,
jumped 9% early Wednesday, after the car parts maker’s upbeat profit guidance weighed against a quarterly loss. Raleigh, N.C.-based Advance Auto had a net loss of $35.1 million, or 59 cents a share, for the quarter, after income of $82.9 million, or $1.39 a share, in the year-earlier period. Sales fell to$2.465 billion from $2.474 billion a year ago. The FactSet consensus was for EPS of 21 cents and sales of $2.464 billion. “As we closed out 2023, we continued to act with a sense of urgency to stabilize the business and position the company to return to profitable growth,” CEO Shane O’Kelly said in a statement. “Our full year results are well below our expectations, and we are focused on instilling greater discipline and accountability both in the fundamental business and in how the organization executes across the board.” The company is still moving ahead with a strategic review of the business, including the sale of its Worldpac and Canadian businesses, he said. It has made new hires, including Ryan Grimsland as CFO and Elizabeth Dreyer as chief accounting officer. The company is now expecting full-year sales to range from $11.3 billion to $11.4 billion, and for EPS to range from $3.75 to $4.25. The FactSet consensus is for 2024 EPS of $3.65 and sales of $11.5 billion. The stock has fallen 55% in the last 12 months, while the S&P 500
SPX,
has gained 28%.
