Shares of Advance Auto Parts surged after the auto-parts retailer reported mixed quarterly results but issued a strong forecast for the future.
Fourth Quarter Results
For its fiscal fourth quarter that ended on Dec. 30, Advance Auto reported a per-share loss of 59 cents, which fell short of Wall Street’s expectations of 21 cents, as reported by FactSet. However, net sales of $2.46 billion aligned with the consensus estimate of $2.46 billion, despite same-store sales dropping by 1.4%.
CEO’s 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,” said CEO Shane O’Kelly in a release.
Strong Forecast for 2024
Looking ahead to 2024, Advance Auto expects net sales to range between $11.3 billion and $11.4 billion with per-share earnings projected to be between $3.75 and $4.25. Analysts had anticipated revenue of $11.46 billion and profits of $3.65. Additionally, the company aims to generate a minimum of $250 million in free cash flow, surpassing analysts’ estimates of $175 million.
Market Reaction
Following this announcement, Advance Auto stock saw an 8.1% increase to $70 in premarket trading on Wednesday, while competitor AutoZone remained steady. Futures on the S&P 500 were down by 0.3%.
