Upcoming AWS Coverage on AutoZone Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 22, 2016 / Active Wall St. announces its post-earnings coverage on Advance Auto Parts Inc. (NYSE: AAP). The company posted its financial results for third quarter fiscal 2016 on November 14, 2016. The aftermarket parts retailer's sales and earnings numbers declined from the year ago period; however results were enough to beat market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Advance Auto Parts' competitors within the Auto Parts Stores space, AutoZone, Inc. (NYSE: AZO), will release ITS results for Q1 ended November 19, 2016, before market open on Tuesday, December 6, 2016. Moreover, the Company will host a conference call on the same day at 10:00 a.m. ET to discuss the results of the quarter. AWS will be initiating a research report on AutoZone in the coming days.

Today, AWS is promoting its earnings coverage on AAP; touching on AZO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AAP

http://www.activewallst.com/registration-3/?symbol=AZO

Earnings Reviewed

For the three months ended on October 08th, 2016, Advance Auto Parts reported that total sales decreased 2.0% to $2.25 billion compared to total sales during Q3 2015 of $2.30 billion. The sales decline was driven by the comparable store sales decrease of 1.0%, the store closures in 2015 and the effect of Carquest store consolidations. The sales decline was partially offset by new store and Worldpac branch openings. The sales numbers exceeded market forecasts of $2.20 billion.

The Company's gross profit rate was 43.9% of sales during Q3 2016 compared to 45.0% during the year ago comparable period. The 104 basis-point decrease in gross profit rate was primarily the result of higher supply chain expenses and headwinds associated with reducing inventory levels.

For Q3 2016, Advanced Auto Parts reported operating income of $193.8 million, or $1.53 per share, versus $206 million, or $1.63 a share, in Q3 2015. Adjusted for one-time items, Advance Auto Parts said it earned $1.73 per share, down from $1.95 per share a year ago; adjusted for restructuring costs came in at $1.73 per share. The results topped Wall Street's expectations for earnings of $1.72 per share. The company's operating income rate was 8.6% during the reported quarter compared to 9.0% during the year ago period. The Company's adjusted operating income was $217.6 million during Q3 2016; declining 10.8% versus the prior year's quarter. As a percentage of sales, adjusted operating income in Q3 2016 was 9.7% versus 10.6% during Q3 2015.

Store Info

As of October 8, 2016, Advanced Auto Parts operated 5,058 stores and 127 Worldpac branches and served approximately 1,250 independently owned Carquest stores.

Cash Flow & Balance Sheet

During Q3 2016, Advanced Auto Parts' operating cash flow decreased approximately 21.3% to $409.4 million through Q3 2016 from $520.1 million through Q3 2015. Free cash flow was $205.2 million, during the reported quarter, compared to $358.9 million in the year earlier quarter. During Q3 2016, the company's capital expenditures were $204.2 million compared to $161.2 million reported in Q3 2015. As of October 08th, 2016, the company had cash and cash equivalents worth $119.49 million compared to cash and cash equivalents of $90.78 million as on January 02nd, 2016.

In a separate press release on November 8, 2016, Advanced Auto Parts ' Board of Directors declared a regular quarterly cash dividend of $0.06 per share to be paid on January 6, 2017 to stockholders of record as of December 23, 2016.

Stock Performance

On Monday, the stock closed the trading session at $166.90, rising 2.66% from its previous closing price of $162.57. A total volume of 764.66 thousand shares have exchanged hands. Advance Auto Parts' stock price advanced 17.59% in the last month, 5.72% in the past three months, and 11.85% in the previous six months. Furthermore, since the start of the year, shares of the company have gained 11.02%. The stock is trading at a PE ratio of 27.37 and has a dividend yield of 0.14%.

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SOURCE: Active Wall Street