Why Advance Auto Parts Stock Was Down Big Today
Shares of Advance Auto Parts (NYSE: AAP) were trading down 17% as of 11:46 a.m. ET on Wednesday after the company delivered disappointing earnings results for the third quarter. The company's earnings per share came in at $2.84, well below the consensus estimate of $3.32.
Year to date, Advance Auto stock has fallen 36%, consistent with the broader market sell-off over concerns about the direction of the economy in a high inflationary environment. Management warned that profits may not meet the company's previous three-year target, which contributed to the stock sell-off today.
Overall, it wasn't a terrible quarter. While comp sales declined by 0.7%, it was in line with management's expectations. Adjusted gross margin improved by slightly less than one point due to higher selling prices and sales of company-owned brands.
Source Fool.com
