NYSE$AAP

Advance Auto Parts Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Advance Auto Parts reported a 3.2% increase in net sales and a 2.1% increase in comparable store sales for the fourth quarter of 2022.

Advance Auto Parts reported a 3.2% increase in net sales to $2.5 billion and a 2.1% increase in comparable store sales for the fourth quarter of 2022. The company's GAAP diluted EPS increased 37.7% to $1.79, and adjusted diluted EPS increased 39.1% to $2.88. The company is taking decisive actions to improve performance in 2023, focusing on inventory availability and leveraging its asset base.

  • Net sales increased 3.2% to $2.5 billion driven by strategic pricing and new store openings.
  • Comparable store sales increased 2.1%.
  • GAAP diluted EPS increased 37.7% to $1.79.
  • Adjusted diluted EPS increased 39.1% to $2.88.

Headline financials

Total Revenue

$2.47B

Previous: $2.4B+3.1%
EPS (adj)

$2.88

Previous: $2.07+39.1%
Comparable Store Sales

2.1%

Previous: 8.2%-74.4%
Capital Expenditures

$90.4M

Previous: $268M-66.2%
Free Cash Flow

$149M

Previous: $702M-78.8%
Net Income

$107M

Previous: $81.7M+30.6%
Operating Income

$132M

Previous: $112M+17.4%
Gross Profit

$1.1B

Previous: $1.07B+2.6%
Cash & Equivalents

$269M

Previous: $601M-55.2%
Total Assets

$12B

Previous: $12.2B-1.4%
Stock-Based Comp

$10.7M

Previous: $45.3M-76.4%

Revenue & EPS history

Advance Auto Parts · Revenue · Quarterly

$2.47B

Q4 2022+3.1%vs Q4 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

In 2023, the company is shifting to GAAP as their reporting method for annual guidance. They expect transformation costs to be less impactful, which reduces the need for non-GAAP adjustments. They are elevating their performance to improve topline growth and share gains while delivering operating income margin expansion.

Tailwinds

  • Net sales between $11.4 billion and $11.6 billion
  • Comparable store sales growth between 1.0% and 3.0%
  • Operating income margin between 7.8% and 8.2%
  • Diluted EPS between $10.20 and $11.20
  • Free cash flow minimum of $400 million

Headwinds

  • Income tax rate between 24.0% and 25.0%
  • Capital expenditures between $300 million and $350 million
  • New store and branch openings between 60 and 80
  • Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
  • Free cash flow is a non-GAAP measure.

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 Q4 2022

Historical avgQ4 2022

-0.5%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-0.9%

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+13.3%+7.5%+17.3%
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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro