by Christopher Freeburn | May 17, 2012 1:43 pm
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.
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.
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