Why Advance Auto Parts Stock Got Creamed Today
Shares of car parts retail chain Advance Auto Parts (NYSE: AAP) got creamed on Wednesday after the company reported financial results for the fourth quarter of 2024 and issued guidance for 2025. Needless to say, it's not what investors were hoping for. And it's why Advance stock is down a crushing 16% as of 2 p.m. ET.
Advance is in the early stages of a multiyear business turnaround. It's selling noncore assets, closing underperforming stores, and reconfiguring its entire supply chain. The numbers are consequently complicated to wade through. But the company had full-year net sales of $9.1 billion, just a hair over management's guidance, which was obviously good.
However, the problem is with Advance's guidance. The company only expects net sales of $8.4 billion to $8.6 billion in 2025 as it continues to close stores. And with a forecast of $300 million in capital expenditures in 2025, management expects negative full-year free cash flow of $25 million to $85 million.
Source Fool.com
