Advance Auto Parts (NYSE:AAP) earnings for the company’s first quarter of 2020 have AAP stock heading higher on Tuesday. That’s despite its adjusted earnings per share (EPS) of 91 cents missing Wall Street’s estimate of $1.75. Its revenue of $2.7 billion also fails to reach analysts’ estimates of $2.74 billion.
Let’s take a closer look at the most recent Advance Auto Parts earnings report below.
- Adjusted per-share earnings are down 63% from $2.46 in the first quarter of 2019.
- Revenue for the quarter comes in 8.6% lower than the $2.95 billion reported in the same period of the year prior.
- Operating income of $78.43 million is a 62.3% drop year-over-year from $207.94 million.
- The Advance Auto Parts earnings report also has net income coming in at $43.59 million.
- That’s a 69.4% decline compared to its net income of $142.5 million reported during the same time last year.
Tom Greco, president and CEO of Advance Auto Parts, said this about the Q1 earnings.
“During the first quarter of 2020, Advance was significantly impacted by COVID-19. As we disclosed previously, stay at home orders in all of our markets from mid-March to the end of our first quarter ending April 18th resulted in significantly reduced car counts in our professional business and less retail traffic in DIY.”
Advance Auto Parts isn’t ready to release 2020 guidance, but it does have good news about the second quarter of the year. The company is seeing store sales increase significantly each week. Comparable store sales are also close to matching what was reported in the second quarter of 2019.
AAP stock ended the day Tuesday up 3.6%.
As of this writing, William White did not hold a position in any of the aforementioned securities.