Advance Auto Parts’ same-store sales surge 7.5% in fiscal Q2

Advance Auto Parts Inc. (NYSE: AAP) said on Tuesday that its same-store sales touched a record-high in almost a decade in the fiscal second quarter. Consequently, its quarterly profit blew past what the analysts had anticipated. Advance Auto Part introduced its next-generation MotoLogic Technology last week that started a new era of auto repair software.

Shares of the company opened more than 5% up on Tuesday. The gain, however, was unsustainable the stock slid over 4% in the next hour. At the peak of the Coronavirus pandemic in March, Advance Auto Parts had sunk to £56.69 per share. Having recovered 115% in roughly five months, the company is now trading at £123.58 per share. Interested in investing online in stocks? Here’s a simple guide to get you started.

Advance Auto Parts’ Q2 financial results versus analysts’ estimates

Advance Auto Parts’ reported £143.61 million of net income in its second quarter that translates to £2.07 per share. Its net income in the same quarter last year was capped at a much lower £94.33 million or £1.31 per share.

Adjusted for one-time items, the American automotive company earned £2.21 per share in the recent quarter. According to FactSet, experts had forecast a lower £1.50 of adjusted earnings per share in Q2.

In terms of revenue, the aftermarket parts provider saw a 7.3% growth in the second quarter to £1.89 billion versus the FactSet consensus of a lower £1.80 billion in sales. For comparable-store sales, analysts had forecast a 2.7% growth in the recent quarter as compared to a significantly stronger 7.5% growth that Advance Auto Parts recorded on Tuesday.

Advance Auto Parts says sales are upbeat in Q3 to date

The Raleigh-based company also expressed confidence on Tuesday that growth in its DIY (do it yourself) segment has shown resilience in the third quarter to date. Its professional channel, it added, was also sustaining robust same-store sales.

CEO Tom Greco of Advance Auto Parts commented on the earnings report on Tuesday and said:

“Without question, we benefitted from a surge in industry demand in the quarter fuelled by the government stimulus, unemployment benefits, and the impact COVID-19 ha on consumer behaviour in terms of how they repaired an maintained their vehicles.”