Advance Auto Parts CEO: we’re now better positioned than pre-pandemic

Advance Auto Parts Inc (NYSE: AAP) on Monday said its sales in the fiscal fourth quarter topped Wall Street estimates. Shares, however, are down 1.0% in extended trading on lower-than-expected profit.

Q4 financial performance

Advance Auto parts said its Q4 profit printed at $81.7 million that translated to $1.30 per share. In the same quarter last year, it had posted a higher $112 million in profit or $1.65 a share. On an adjusted basis, the automotive parts seller earned $2.07 per share in the recent quarter.

At $2.40 billion, the U.S. company noted a 2.0% annualised growth in revenue. According to FactSet, experts had forecast $1.97 of adjusted EPS on $2.37 billion in revenue. In the earnings press release, CEO Tom Greco said:

Guidance for fiscal 2022

For fiscal 2022, Advance Auto Parts expects its net sales to fall in the range of $11.2 billion to $11.5 billion. The Raleigh-based company forecasts up to $13.75 of per-share earnings this year.

The NYSE-listed firm improved its adjusted gross profit margin in Q4, mainly due to better pricing. While inflationary pressures continue to be a challenge, the chief executive said:

Last month, Advance Auto Parts initiated gas rewards in collaboration with Shell.