Advance Auto Parts (NYSE:AAP) stock is taking a beating on Wednesday with the release of the auto parts retailer’s earnings report for the first quarter of 2023.
The bad news for AAP stock comes from its diluted earnings per share of 72 cents. That’s nowhere close to the $2.57 per share Wall Street was expecting for the quarter. It’s also a major drop year-over-year (YOY) from EPS of $2.26.
To go along with that, Advance Auto Parts reported revenue of $3.42 billion for the first quarter of the year. Yet again, that came in below analysts’ revenue estimate of $3.43 billion — even if it is a 1.3% increase from the $3.37 billion reported in the same period last year.
Jeff Shepherd, Executive Vice President and Chief Financial Officer of Advance Auto Parts, said the following in the earnings report:
“Given the shortfall experienced this quarter, along with our revised outlook for the balance of the year, we are reducing our full-year 2023 guidance. In addition, our board of directors made the decision to reduce our quarterly cash dividend to provide enhanced financial flexibility.”
AAP Stock Outlook
Looking into that outlook, Advance Auto Parts expects earnings per share between $6 and $6.50 as well as revenue ranging from $11.2 billion to $11.3 billion in 2023. To put that in perspective, Wall Street’s estimates include EPS of $10.64 on revenue of $11.43 billion for the year.
AAP stock is down 28.8% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.