Advance Auto Parts Inc.’s stock (AAP) surged 9% early Wednesday after the car parts maker provided positive profit guidance despite reporting a quarterly loss. The Raleigh, N.C.-based company posted a net loss of $35.1 million, or 59 cents a share, for the quarter, compared to income of $82.9 million, or $1.39 a share, in the year-ago period. Sales also saw a slight dip to $2.465 billion from $2.474 billion a year ago.
CEO’s Statement and Future Outlook
CEO Shane O’Kelly expressed his thoughts on the company’s performance, stating, “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.” He acknowledged that their full-year results fell below expectations and emphasized the need for greater discipline and accountability within the organization.
Strategic Moves and Leadership Changes
Advance Auto Parts Inc. is actively engaged in a strategic review of its business, with plans for the potential sale of its Worldpac and Canadian divisions. The company also announced key leadership appointments, welcoming Ryan Grimsland as CFO and Elizabeth Dreyer as chief accounting officer.
Revised Full-Year Guidance
Looking ahead, Advance Auto Parts Inc. anticipates full-year sales in the range of $11.3 billion to $11.4 billion, with projected EPS between $3.75 and $4.25. Despite market expectations showing slightly lower figures, with projected 2024 EPS of $3.65 and sales of $11.5 billion.
Stock Performance
The company’s stock has experienced a 55% decline over the last 12 months, in contrast to the S&P 500’s 28% growth during the same period.