ADVANCE AUTO PARTS Reports Positive Earnings for Q2 FY2023
August 25, 2023
☀️Earnings Overview
On June 30, 2023, ADVANCE AUTO PARTS ($NYSE:AAP) reported their second quarter earnings of FY2023. With total revenue of USD 2686.1 million, there was a 21.4% decrease compared to the same quarter in the prior year; however, their net income was USD 85.4 million – representing a 100.1% increase from the same period of the previous year.
Price History
On Wednesday, ADVANCE AUTO PARTS reported strong earnings for the second quarter of fiscal year 2023. The company’s stock opened at $67.5 and closed at $69.4, up by 3.1% from its last closing price of $67.3. This was a positive sign following the company’s struggles earlier this year due to the pandemic. This increase in sales can be attributed to the company’s increased focus on its e-commerce platform and digital services, as well as its efforts to expand its product offerings and services.
In addition to strong sales, ADVANCE AUTO PARTS also reported higher gross profit margins and improved operational efficiency. Overall, ADVANCE AUTO PARTS’ performance in Q2 FY2023 is a great sign for the company and its investors, as it shows that the company is making progress towards its goal of long-term success. With continued focus on their e-commerce platform and digital services, as well as their efforts to develop new products and services, the company is well-positioned to continue its positive trajectory in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AAP. More…
| Total Revenues | Net Income | Net Margin |
| 11.22k | 345.69 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AAP. More…
| Operations | Investing | Financing |
| 249.12 | -357.41 | 159.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AAP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.3k | 9.58k | 45.81 |
Key Ratios Snapshot
Some of the financial key ratios for AAP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -5.9% | 4.7% |
| FCF Margin | ROE | ROA |
| -1.0% | 12.2% | 2.7% |
Analysis
At GoodWhale, we recently conducted an analysis of ADVANCE AUTO PARTS and their wellbeing. We found that, based on our Risk Rating system, ADVANCE AUTO PARTS is a low risk investment in terms of financial and business aspects. However, we did detect one risk warning in their balance sheet, which we urge potential investors to consider. To get more information about this risk warning, we suggest registering as a user on our platform to get access to the full report. More…
Peers
Advance Auto Parts Inc is an American automotive aftermarket parts retailer. Headquartered in Roanoke, Virginia, Advance Auto Parts has over 5,200 stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates under the Advance Auto Parts, Advance Discount Auto Parts, and Auto World names. Genuine Parts Co is an American service organization engaged in the distribution of automotive and industrial replacement parts and products, operating under the NAPA Auto Parts, NAPA Home & Business Solutions, and Worldpac brands. CarParts.com Inc is an American online retailer of aftermarket car parts and accessories, headquartered in Carson, California. O’Reilly Automotive Inc is an American retailer specializing in the sale of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.
– Genuine Parts Co ($NYSE:GPC)
Genuine Parts Co is a distributor of automotive and industrial replacement parts in the U.S., Canada, Mexico, Australasia, and Africa. It operates through the following segments: Automotive, Industrial, Electrical, and Office Products Group. The Automotive segment offers original equipment and aftermarket products for light and heavy duty vehicles. The Industrial segment supplies replacement parts for various industries, including material handling, transportation, construction, food and beverage, and others. The Electrical segment provides replacement parts for the electrical distribution industry. The Office Products Group segment comprises of office products and office furniture. Genuine Parts was founded by Erskine Henderson on May 13, 1928 and is headquartered in Atlanta, GA.
– CarParts.com Inc ($NASDAQ:PRTS)
CarParts.com Inc has a market cap of 301.17M as of 2022, a Return on Equity of 1.06%. The company is an online retailer of automotive parts and accessories. CarParts.com offers a wide range of parts for all makes and models of vehicles.
– O’Reilly Automotive Inc ($NASDAQ:ORLY)
O’Reilly Automotive Inc is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. As of 2022, it had a market cap of 51.63B and a ROE of -159.26%. The company operates through four segments: Retail Stores, Wholesale Parts, Professional Customer and eCommerce. It offers products under the following brands: O’Reilly Auto Parts, AutoZone, Advance Auto Parts, NAPA Auto Parts and Carquest Auto Parts.
Summary
On June 30 2023, Advance Auto Parts reported their earnings for the second quarter of FY2023, with total revenue at USD 2686.1 million – a decrease of 21.4% compared to the same quarter in the previous year. Despite this, their reported net income was USD 85.4 million – an increase of 100.1%, signaling that the company is successfully cutting costs and increasing efficiency. On the news, the stock price rose. For investors, Advance Auto Parts presents an opportunity to capitalize on their current cost-cutting and efficiency measures, which could lead to positive returns in the future.
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