Facebook (FB), GoPro (GPRO) and Groupon (GRPN) shoot higher on Q2 earnings beat. READ MORE

Advance Auto Parts Shares Plunge on Q1 Miss

Rising supply costs hurt company margins, sales miss estimates

   

Advance Auto Parts (NYSE:AAP) announced first-quarter profits of $133.5 million, up from $109.6 million during the same period last year. The company reported EPS of $1.79, compared to $1.35 in 2011.

That missed the forecast of Wall Street analysts who had expected EPS of $1.81, Reuters said.

CNNMoney: Best Spring 2012 Auto Lease Deals
CNNMoney: Best Spring 2012 Auto Lease Deals

Investors were decidedly unhappy with the results. Shares of Advance Auto Parts plunged more than 15% in Thursday trading, dropping below $70 a share.

The company said same-store sales rose 2.1% during the quarter, boosting total sales to $1.96 billion, up 3% from the prior year. This also fell short of analysts’ estimate of $2 billion.

Looking forward, Advance Auto Parts reiterated its earnings forecast of between $5.55 and $5.75 a share for the year.

Analysts had been looking for EPS of $5.97 for 2012.

Company officials attributed the less than expected first-quarter earnings to increased costs in its supply chain, which cut into profit margins.

A $500 million stock repurchase plan was announced, superseding the $300 million share buyback program approved by the company last year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/advance-auto-parts-shares-plunge-on-q1-miss/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.