Advance Auto Parts (AAP) 2021 Q1 Earnings Report

Advance Auto Parts Inc. (NYSE:AAP), founded in 1932, specializes in automotive aftermarket parts (see 10 best automotive stocks to invest in). It serves both professional and individual customers. The company operates through its network of more than 4,790 stores spread across the U.S, Canada, and Puerto Rico. Moreover, it operates 178 stores through its wholly-owned subsidiary Worldpac.

The North Carolina-based automotive aftermarket parts provider recently announced better-than-expected financial results for the first quarter. Advance Auto Parts reported earnings of $2.81 per share for the three months ended April 24, significantly higher than 63 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $3.34 per share, beating the consensus forecast of $3.05 per share.

Revenue came in at $3.33 billion, up 23 percent from the year-ago quarter. Analysts, on average, were expecting the company to report revenue of $3.3 billion. Comparable sales in the quarter climbed 24.7 percent on a year-over-year basis. The surge was mainly driven by an increasing number of customers who preferred spending money on repairing and maintaining their existing cars instead of buying new ones.

Speaking on the results, CEO Tom Greco said, “In the first quarter of 2021, we delivered record-breaking sales growth across our business, as both DIY and professional customers turned to Advance for their automotive needs amid a strong industry backdrop. I want to thank all our team members and independent partners for their relentless focus on execution during the quarter. In addition to the positive macro environment, our significant investments in both the business and our team over the past several years led to an improved customer experience and margin expansion.”

Advance Auto Parts also raised its revenue outlook for the full year. The company now expects revenue in the range of $10.4 billion to $10.6 billion for fiscal 2021, up from its previous guidance between $10.2 billion to $10.4 billion.