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Why Advance Auto Parts, Inc. Stock is Soaring Today

AAP beat EPS estimates for Q3 by 22 cents

   

Advance Auto Parts, Inc. (NYSE:AAP) stock was flying high today following the release of its earnings report for the third quarter of 2017.

Why Advance Auto Parts, Inc. Stock is Soaring Today
Source: Shutterstock

During the third quarter of the year, Advance Auto Parts, Inc. reported earnings per share of $1.43. This is down from its earnings per share of $1.73 from the same time last year. However, it was still a plus for AAP stock by coming in well above Wall Street’s earnings per share estimate of $1.21 for the quarter.

It’s a good thing that Advance Auto Parts, Inc.’s earnings per share for the quarter were strong, because it was found wanting in terms of revenue. AAP reported revenue of $2.18 billion in the third quarter of 2017, which is down from the $2.25 from the third quarter of 2016. It also wasn’t able to reach analysts’ revenue estimate of $2.21 billion for the third quarter of the year.

Operating income reported by Advance Auto Parts, Inc. in the third quarter of 2017 was $156.60 million. This is down from the operating income of $193.80 million reported in the same period of the year prior.

Advance Auto Parts, Inc. also reported net income that was lower when compared to the same quarter of the previous year. Net income in the third quarter of 2017 was $96.00 million. Net income from the third quarter of 2016 was $113.84 million.

Advance Auto Parts, Inc. also says that it will be paying a dividend of 6 cents per share to investors on Jan. 5, 2018. Shareholders must be on record as of Dec. 22, 2017 to receive this dividend.

AAP stock was up 16% as of Tuesday afternoon, but is down 42% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/11/advance-auto-parts-inc-stock-is-up-today/.

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