NYSE$AAP

Advance Auto Parts Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Advance Auto Parts reported Q3 2022 results with net sales increase and comparable store sales decline.

Advance Auto Parts reported a 0.8% increase in net sales to $2.6 billion, driven by strategic pricing and new store openings. However, comparable store sales decreased by 0.7%. The company reiterates its full-year guidance for net sales growth, comparable store sales, and adjusted operating income margin expansion.

  • Net sales increased 0.8% to $2.6 billion.
  • Comparable store sales decreased 0.7%.
  • Diluted EPS decreased 31.3% to $1.84; Adjusted diluted EPS decreased 11.5% to $2.84.
  • Opened 37 new store and branch locations.

Headline financials

Total Revenue

$2.64B

Previous: $2.62B+0.8%
EPS (adj)

$2.84

Previous: $3.21-11.5%
Comparable Store Sales

-0.7%

Previous: 3.1%-122.6%
Capital Expenditures

-$334M

Previous: -$191M-74.7%
Free Cash Flow

-$223M

Previous: -$21.2M-951.8%
Net Income

$111M

Previous: $170M-34.6%
Operating Income

$177M

Previous: $229M-22.7%
Gross Profit

$1.18B

Previous: $1.18B-0.2%
Cash & Equivalents

$191M

Previous: $605M-68.4%
Total Assets

$12.1B

Previous: $11.9B+2.3%
Stock-Based Comp

$10.9M

No prior period

Revenue & EPS history

Advance Auto Parts · Revenue · Quarterly

$2.64B

Q3 2022+0.8%vs Q3 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

The company is reiterating its full-year guidance for net sales growth, comparable store sales and adjusted operating income margin expansion. Adjusted diluted EPS guidance range is updated to reflect the impact of foreign currency. Strategic inventory investments are being made to improve availability.

Tailwinds

  • Reiterating full year guidance for net sales growth.
  • Reiterating comparable store sales guidance.
  • Reiterating adjusted operating income margin expansion guidance.
  • Making strategic inventory investments to improve availability.
  • Inventory investments are expected to accelerate growth in 2023.

Headwinds

  • Adjusted diluted EPS guidance range updated to reflect impact of foreign currency.
  • Reduced free cash flow guidance.
  • Margins contracting in the third quarter.
  • Not satisfied with relative topline performance versus the industry this year.
  • Diluted EPS was negatively affected by approximately $0.20 as a result of foreign currency impact in the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.4%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-1.4%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+57.0%

Q1 2025

Best reaction

-39.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+18.9%
Q4 2025+1.1%-3.9%-11.1%
Q3 2025-8.4%-12.8%-5.9%
Q2 2025-7.5%-8.9%-1.2%
Q1 2025+57.0%+58.4%+57.8%
Q4 2024-17.8%-22.8%-15.1%
Q3 2024-7.9%-6.0%+7.1%
Q2 2024-20.6%-22.7%-33.8%
Q1 2024-4.6%-3.9%-9.8%
Q4 2023+4.3%+7.6%+31.4%
Q3 2023-8.5%-9.2%+7.4%
Q2 2023+0.8%-2.5%-14.5%
Q1 2023-39.4%-41.5%-37.3%
Q4 2022-1.3%-1.5%-15.7%
Q3 2022-15.0%-19.7%-22.1%
Q2 2022-9.4%-12.5%-17.3%
Q1 2022-0.9%+6.1%-4.0%
Q4 2021-0.2%-1.9%-6.9%
Q3 2021-1.4%-3.8%+0.0%
Q2 2021+2.2%-1.9%+3.0%
Q1 2021-1.8%-0.8%+8.4%
Q4 2020+5.9%+8.6%+20.2%
Q3 2020-0.1%-1.7%+1.0%
Q2 2020-0.1%-3.0%-3.9%
Q1 2020+3.5%+1.8%+12.7%
Q4 2019+4.9%+5.3%-35.6%
Q3 2019-6.1%-3.6%-7.5%
Q2 2019-4.0%-3.9%+9.2%
Q1 2019-0.9%-2.0%-5.0%
Q4 2018-2.3%-5.0%-0.5%
Q3 2018+6.4%+7.3%-0.5%
Q2 2018+9.1%+10.3%+15.1%
Q1 2018+3.4%+4.8%+17.1%
Q4 2017+4.9%+9.0%+5.2%
Q3 2017+11.3%+8.5%+21.8%
Q2 2017-16.3%-14.7%-8.5%
Q1 2017-6.2%-4.6%-14.9%
Q4 2016-1.2%-2.6%-6.7%
Q3 2016+13.3%+12.1%+18.3%
Q2 2016-5.8%-5.8%-11.2%
Q1 2016+1.8%
Q4 2015+1.6%
Q3 2015-17.0%
Q2 2015+8.7%
Q1 2015+6.9%
Q4 2014-7.5%
Q3 2014-5.0%
Q2 2014+6.9%
Q1 2014-1.2%
Q4 2013+12.9%
Q3 2013-0.1%
Q2 2013+1.1%
Q1 2013-2.8%
Q4 2012+8.2%
Q3 2012-1.7%
Q2 2012-2.8%
Q1 2012+1.3%
Q4 2009+1.4%
Q3 2011-1.3%
Q2 2011-0.6%
Q1 2011-1.0%
Q3 2010+0.3%
Q2 2010+0.8%
Q1 2010+2.2%
Q4 2010+2.2%

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