Advance Auto Parts (AAP) Stock Drops 16% as DIY Shoppers Pull Back on Spending
TLDR
- AAP stock fell 16% in premarket trading to $46.92 after Q2 same-store sales missed expectations
- Q2 adjusted EPS came in at $1.03, beating the $0.81 estimate, but net sales of $2B missed the $2.04B forecast
- Same-store sales fell 0.5%, well below the 1.4% growth Wall Street expected
- CEO Shane O’Kelly pointed to tighter household budgets hitting the DIY channel hard in the last four weeks of the quarter
- Full-year adjusted EPS guidance was raised to $2.60-$3.30, up from $2.40-$3.10
Advance Auto Parts (AAP) stock dropped 16% to $46.92 in premarket trading Thursday after the company reported a mixed second quarter, with earnings beating estimates but sales and same-store numbers falling short.
The stock had been up 43% year-to-date heading into Thursday’s session. That rally took a hit fast.
Q2 adjusted earnings came in at $1.03 per share, up from $0.69 a year ago and above the Wall Street estimate of $0.81. Net sales totaled $2 billion, slightly below the analyst forecast of $2.04 billion and roughly flat compared to $2.01 billion in the same period last year.
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