LONDON, UK / ACCESSWIRE / April 04, 2018 / Active-Investors.com has just released a free earnings report on Advance Auto Parts, Inc. (NYSE: AAP) ("AAP"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=AAP. Advance Auto Parts reported its fourth quarter and fiscal 2017 operating and financial results on February 21, 2018. The auto parts retailer reported better than expected revenue and earnings results. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Advance Auto Parts most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=AAP
Earnings Highlights and Summary
For the twelve-week period ended December 30, 2017, AAP's total net sales came in at $2.04 billion, a 2.2% decrease versus Q4 2016 net sales of $2.08 billion. The Company's reported quarter comparable store sales fell 2.6% on a y-o-y basis. AAP's reported numbers beat analysts' estimates of $2.02 billion.
AAP's net sales for full year (FY) 2017 were $9.37 billion versus $9.57 billion in FY16. The Company's comparable store sales decreased 2.0% for FY17.
During Q4 2017, AAP's gross profit margin decreased 69 basis points to 42.9% from 43.6% in Q4 2016. The decline was primarily driven by increased supply chain costs. In addition, the non-cash impact of inventory optimization negatively affected gross margins by 20 basis points in the reported quarter.
For Q4 2017, AAP's, GAAP selling, general, and administrative (SG&A) was 38.6% of net sales, down 13 basis points versus 38.5% for Q4 2016. The Company's adjusted SG&A was 37.3% of net sales, reflecting a 24-basis point favorable improvement from Q4 2016, as continued progress in expense management during the reported quarter, including labor and third-party fee reductions, were partially offset by higher medical costs and insurance claims.
In Q4 2017, AAP's operating income on a GAAP basis was $87.2 million, or 4.3% of net sales, compared to $106.1 million, or 5.1% of sales, in Q4 2016. The Company's reported quarter adjusted operating income was $113.7 million, 5.6% of net sales, for the reported quarter. This represented a decline of 45 basis points versus the prior year's same period, primarily driven by the declines in revenue and gross profit as well as SG&A.
On a GAAP basis, the Company reported net income of $184.50 million, or $2.49 per diluted share, compared to earnings of $62.37 million, or $0.84 per diluted share, for Q4 2016. The Company's reported quarter results included a benefit of $1.94 related to the tax reform. On an adjusted basis, AAP reported earnings of $0.77 per share compared to $1.00 per share in the year ago corresponding period, ahead of Wall Street's estimates of $0.65 per share.
For FY17, the Company reported GAAP net income of $475.51 million, or $6.42 per diluted share, compared to $459.62 million, or $6.20 per diluted share, in FY16. On an adjusted basis, AAP posted earnings of $5.37 per share compared to $7.15 per share in FY16.
Cash Matters
For FY17, AAP's operating cash flow increased 14.8% to $600.8 million from $523.3 million for FY16. The Company's free cash flow was $411.0 million for FY17 compared to $263.7 million in the prior year's same period, reflecting an increase of 55.9%. This increase was primarily driven by optimization of working capital and disciplined capital spending.
Store Information
As of December 30, 2017, AAP operated 5,054 stores and 129 Worldpac branches and served 1,218 independently owned Carquest stores.
Stock Performance Snapshot
April 03, 2018 - At Tuesday's closing bell, Advance Auto Parts' stock slightly declined 0.02%, ending the trading session at $111.91.
Volume traded for the day: 1.50 million shares, which was above the 3-month average volume of 1.35 million shares.
Stock performance in the last three-month - up 12.26%; and previous six-month period - up 12.81%; and year-to-date - up 12.26%
After yesterday's close, Advance Auto Parts' market cap was at $8.27 billion.
Price to Earnings (P/E) ratio was at 25.00.
The stock has a dividend yield of 0.21%.
The stock is part of the Services sector, categorized under the Auto Parts Stores industry. This sector was up 0.9% at the end of the session.
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