Why Is Advance Car Pieces (AAP) Up 9.3% Due to the fact Last Earnings Report?

A thirty day period has absent by given that the final earnings report for Advance Auto Sections (AAP). Shares have extra about 9.3% in that time body, outperforming the S&P 500.

Will the latest optimistic trend carry on top up to its subsequent earnings release, or is Advance Auto Pieces because of for a pullback? Prior to we dive into how traders and analysts have reacted as of late, let us just take a fast glance at the most latest earnings report in purchase to get a superior deal with on the important catalysts.

Progress Automobile Parts’ Q1 Earnings Major, ’21 Check out Up

Progress Car Pieces described adjusted earnings of $3.34 for each share for first-quarter 2021 (ended Apr 24, 2021), skyrocketing 234% from the prior-12 months figure. The claimed determine also conquer Zacks Consensus Estimate of $3.08 on greater-than-predicted comps expansion. For the initially quarter, comparable retailer gross sales amplified 24.7%, outpacing the consensus mark of 13.33% progress.

Progress Vehicle Pieces generated internet revenues of $3,330.4 million, topping the Zacks Consensus Estimate of $3,314.4 million. Also, the earnings figure elevated 23.4% from the yr-in the past reported figure.

Modified operating profits climbed 164% yr in excess of year to $298.8 million. Adjusted advertising, standard and administrative expenses totaled $1,232.8 million in contrast with $1,094.3 million witnessed in the 12 months-back quarter.

Monetary Placement

Progress Automobile Parts experienced cash and income equivalents of $880.2 million as of Apr 24, 2021 as opposed with $834.9 million as of Jan 2, 2021. Full prolonged-term personal debt was $1,033 million as of Apr 24, 2021, in essence unchanged from the fourth quarter.

Running dollars flow jumped to $329.9 million from the 12 months-in the past figure of $10.9 million. Totally free money move (FCF) came in at $259 million vs . the calendar year-back damaging FCF of $72.1 million.

Dividend & Share Repurchase

In April, Advance Car Parts’ board approved a funds dividend of $1 for every share, indicating a significant uptick from 25 cents. The dividend would be payable on Jul 2 to all typical shareholders of report as of Jun 18, 2021. It also authorised an more buyback plan of $1 billion. All through the quarter, the organization repurchased around 1.1 million shares for $170.4 million at an ordinary value of $157.84 per share.

Advance Auto Areas returned $204 million to shareholders by way of buybacks and dividend in the quarter less than evaluate. At the conclude of to start with-quarter 2021, the enterprise had $1.3 billion remaining below the share-repurchase program.

Retailer Update

As of Apr 24, it operated 4,971 shops and 178 Worldpac branches in the United States, Canada, Puerto Rico and U.S. Virgin Islands. It also serves 1,285 independently-owned Carquest-branded outlets throughout these spots, in addition to Mexico, the Bahamas, Grand Cayman, Turks and Caicos, and British Virgin Islands.

Guidance for 2021

Progress Vehicle Sections raised whole-yr 2021 see. It now projects entire-yr 2021 net product sales of $10.4-$10.6 billion, up from earlier forecast of $10.2-$10.4 billion. Equivalent retailer income growth and adjusted working earnings margin are now envisioned in the band of 4-6% and 9-9.2%, respectively. The  company expects FCF of minimal $575 million. It intends to open 100-150 retailers this yr.

How Have Estimates Been Shifting Considering the fact that Then?

In the past month, buyers have witnessed an upward craze in contemporary estimates.

VGM Scores

Currently, Progress Auto Pieces has a awesome Advancement Score of B, while it is lagging a ton on the Momentum Rating front with an F. On the other hand, the stock was allocated a grade of B on the benefit facet, placing it in the next quintile for this investment strategy.

In general, the inventory has an mixture VGM Rating of B. If you usually are not targeted on one particular system, this score is the one particular you need to be intrigued in.


Estimates have been trending upward for the stock, and the magnitude of these revisions appears promising. It comes with tiny surprise Progress Vehicle Parts has a Zacks Rank #2 (Buy). We hope an over normal return from the stock in the next number of months.

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