Key Takeaways
- Shares of Advance Auto Parts slumped on Wednesday after the company’s sales projections for the first quarter came in below expectations.
- Fourth-quarter sales were higher than analysts’ forecasts, and the retailer posted a smaller adjusted loss than projections.
- JPM analysts called the quarter a “mixed bag” for Advance Auto Parts, with its 2025 sales likely weighted to the second half of the year.
Advance Auto Parts (AAP) shares sank Wednesday after the auto retailer’s lackluster sales projections for the first quarter outweighed solid fourth-quarter results.
The company reported $2.00 billion in sales in the final quarter of 2024, down slightly year-over-year but better than analysts polled by Visible Alpha had expected. Advance Auto Parts recorded an adjusted loss of $1.18 per share as comparable store sales declined by 1%, both also better than consensus.
The retailer’s current-quarter projections came in lower than expected. Advance Auto Parts sees Q1 sales around $2.5 billion with a 2% comparable sales decline, while analysts expected $2.61 billion and a 0.51% decline, respectively.
JPM Calls Report ‘Mixed Bag,’ With 2025 ‘More Back-Half Weighted’
JPMorgan analysts said in a note following the report that the results and projections amounted to a “mixed bag with very low visibility and more back-half weighted, as expected.”
Last November, Advance Auto Parts announced a turnaround plan that included the closing of more than 700 total company-owned and independent stores.
Shares of Advance Auto Parts were down nearly 13% Wednesday and have lost about a third of their value over the past year to hover near decade-plus lows.
TradingView
:max_bytes(150000):strip_icc()/GettyImages-2196090629-0d9954d71fa54394bf588301f5f0083c.jpg?w=1200&resize=1200,0&ssl=1&description=Advance+Auto+Parts+Stock+Sinks+on+Soft+Q1+Sales+Projections){kind=link}