Advance Auto Q4 Loss Narrower Than Expected, Revenues Decline Y/Y

Advance Auto Parts, Inc. AAP reported an adjusted loss of $1.18 per share for the fourth quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.38. The company had incurred an adjusted loss of 59 cents in the year-ago quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Advance Auto generated net revenues of $2 billion, which topped the Zacks Consensus Estimate of $1.93 billion. Comparable store sales decreased 0.9% year over year. We projected a decline of 2% for the same. The top line decreased from $2.46 billion generated in the year-ago quarter.Advance Auto Parts, Inc. Price, Consensus and EPS Surprise Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. QuoteGross profit decreased 57.6% to $347.1 million (17.4% of net sales). AAP reported operating loss of $820 million. SG&A expenses totaled $1.2 billion for fourth-quarter 2024, up 35.5% year over year.The company had cash and cash equivalents of $1.87 billion as of Dec. 28, 2024, compared with $488 million as of Dec. 30, 2023. Total long-term debt was $1.79 billion as of Dec. 28, 2024.In 2024, net cash provided by operating activities and negative free cash flow totaled $140.5 million and $40.3 million, respectively.As of Dec. 28, 2024, the company operated 4,788 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 934 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.On Feb. 11, 2025, AAP declared a dividend of 25 cents a share to be paid on April 25, 2025, to shareholders as of April 11, 2025.AAP Reiterates 2025 GuidanceAdvance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are projected in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million.Net sales and adjusted operating income margin for 2027 are expected to be $9 billion and 7%, respectively. AAP targets to open 50-70 stores in 2027, with comps envisioned to grow at a positive low-single-digit percentage.Advance Auto’s Zacks Rank & Key PicksAAP carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 20 cents and 40 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks