Notable News Spotlight: Advance Auto Parts, Inc. (NYSE: AAP)

On 19 March 2020, Advance Auto Parts, Inc. (NYSE: AAP) spotted trading -52.91% off 52-week high price. On the other end, the stock has been noted 9.43% away from the low price over the last 52-weeks. The stock changed -3.12% to recent value of $85.97. The stock transacted 1185027 shares during most recent day however it has an average volume of 1116.67K shares. The company has 79.67M of outstanding shares and 68.97M shares were floated in the market.

Advance Auto Parts, Inc. (NYSE: AAP) recently reported its financial results for the fourth quarter and full year ended December 28, 2019.

Fourth Quarter and Full Year 2019 Highlights

Net sales for the fourth quarter 2019 were $2.1B, a 0.4% increase versus the fourth quarter of the previous year. Comparable store sales for the fourth quarter 2019 increased 0.1%. For the full year 2019, Net sales were $9.7B, a raise of 1.3% from the full year 2018. Comparable store sales for the full year 2019 increased 1.1%.

Adjusted gross profit margin was 44.0% of Net sales in the fourth quarter 2019, a 19-basis point decrease from the fourth quarter of 2018. The primary drivers of the decrease were related to the impact of the LIFO accounting method and the planned headwind from consumer incentive discounts, which were partially offset by lower material costs. The Company’s GAAP Gross profit margin reduced to 44.0% from 44.1% in the fourth quarter of the previous year. Adjusted gross profit margin for the full year 2019 was 44.0%, a decrease of 12 basis points from the full year 2018. The Company’s full year 2019 GAAP Gross profit margin reduced to 43.8% from 44.0% for the full year 2018.

Adjusted SG&A was 36.9% of Net sales in the fourth quarter 2019, an improvement of 125 basis points as contrast to the fourth quarter of 2018. This was primarily driven by improvements in labor related costs and continued reduction in insurance claims. The Company’s GAAP SG&A for the fourth quarter 2019 was 38.0% of Net sales contrast to 40.1% in the same quarter of the previous year. For the full year 2019, Adjusted SG&A was 35.8%, an improvement of 48 basis points contrast to the full year 2018. The Company’s full year 2019 GAAP SG&A was 36.8% of Net sales contrast to 37.7% for the full year 2018.

The Company’s Adjusted operating income was $149.9M in the fourth quarter 2019, a raise of 18.0% versus the fourth quarter of the previous year. Adjusted operating income margin improved to 7.1% of Net sales for the fourth quarter 2019, a raise of 106 basis points contrast to the fourth quarter of the previous year. On a GAAP basis, the Company’s Operating income was $126.1M, a raise of 49.7% contrast to the fourth quarter of the previous year. Operating income margin in the fourth quarter 2019 was 6.0% of Net sales, a raise of 197 basis points from the fourth quarter 2018. For full year 2019, Adjusted operating income was $795.0M, a raise of 6.0% from the full year 2018. Adjusted operating income margin for the full year 2019 improved to 8.2% of Net sales, a raise of 36 basis points contrast to the full year 2018. The Company’s full year 2019 GAAP Operating income was $677.2M, 7.0% of Net sales, a raise of 67 basis points contrast to the full year 2018.

The Company’s effective tax rate in the fourth quarter 2019 was 20.1%. The Company’s Adjusted Diluted EPS was $1.64 for the fourth quarter 2019, a raise of 40.2% contrast to the same quarter in the previous year. On a GAAP basis, the Company’s Diluted EPS increased 86.5% to $1.38. The effective tax rate for the full year 2019 was 23.7%. The Company’s Adjusted Diluted EPS was $8.19 for the full year 2019, a raise of 14.9% versus the full year 2018. The Company’s Diluted EPS on a GAAP basis increased 19.4% to $6.84 year over year.

Operating cash flow was $866.9M for the full year 2019 versus $811.0M for the full year 2018, a raise of 6.9%. Free cash flow for the full year 2019 was $596.8M, a decrease of 3.3% contrast to the full year 2018.

 Its earnings per share (EPS) expected to touch remained 21.10% for this year while earning per share for the next 5-years is expected to reach at 14.20%. AAP has a gross margin of 43.90% and an operating margin of 7.00% while its profit margin remained 5.00% for the last 12 months.   According to the most recent quarter its current ratio was 1.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of -31.54% from the mean of 20 days, -36.38% from mean of 50 days SMA and performed -42.71% from mean of 200 days price. Company’s performance for the week was -21.25%, -38.65% for month and YTD performance remained -46.32%.

Gregory Amaral

Gregory Amaral–  Business Stories I am Gregory Amaral with more than 10 years of experience in the Stock market industry, I am energetic about Finance and Business news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of Observednews.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Business News category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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