Advance Auto Parts, Inc. (NYSE:AAP) posted its quarterly earnings results Thursday, causing shares to fall.
The automotive parts provider earned $87 million, or $1.17 per share in its second quarter, compared to earnings of $124.6 million, or $1.68 per share in the year-ago quarter.
On an adjusted basis, Advance Auto Parts earned $1.58 per share, which missed Wall Street’s consensus estimate of $1.65 per share, according to data compiled by FactSet.
Revenue came in at $2.26 billion, which was roughly in line with analysts’ projections, based on Zacks Investment Research’s data. This figure was 0.3% higher than the year-ago period.
Advance Auto Parts posted same-store sales that were flat, compared to expectations of a 0.2% decline. Gross profit fell to $993.1 million compared with the year-ago figure of $1.01 billion.
Gross margin also slumped to 43.9% from 44.8% in the year-ago period. The company recently declared a quarterly dividend of six cents per share.
“Our revised guidance for the year incorporates the impact of industry headwinds in the first half, which we expect to continue in the second half of the year and we are taking the appropriate actions to adapt to this environment,” CEO Executive Tom Greco said in a statement.
The company predicts that full-year same-store sales will fall somewhere between 3% to 1%, which is wider than the outlook of a 0.5% decline. Advance Auto Parts is slated to open 60 to 65 new stores this year.
AAP stock fell 21.6% Tuesday.
