Why Advance Auto Parts Stock Keeps Dropping
Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. The news this week wasn't great. Revenues inched up less than 1%, gross-profit margins declined, and earnings per share (EPS) were cut nearly in half to just $1.43 per share. Little wonder, then, that Advanced Auto Parts announced it is switching CEOs and installing Shane O'Kelly in the office effective Sept. 11.
Wall Street doesn't seem convinced that a change in CEO will suffice to save this car parts dealer, however. Yesterday, five separate analysts cut their price targets on the stock, and this morning a sixth -- Stephens -- joined in with one of the lowest targets we've yet seen: $71 per share.
Advanced Auto Parts stock is retreating further on the news, down 6.2% as of 1:20 p.m. ET.
Source Fool.com
