Advance Auto Parts (NYSE:AAP) delivered stronger-than-expected fourth-quarter results, but its shares dropped 14% intra-day today.
The automotive parts retailer posted an adjusted loss per share of $1.18, which narrowed from the $1.31 loss analysts had forecast. Revenue came in at $2 billion, outpacing the $1.93 billion consensus estimate, signaling better-than-expected demand despite ongoing challenges.
Throughout 2024, Advance Auto Parts focused on restructuring efforts to reposition itself for long-term growth, with total net sales for the year reaching $9.1 billion—down 1.2% from 2023. Comparable store sales also declined 0.7% year-over-year, reflecting softening demand in certain segments.
Looking forward, the company aims to regain momentum in 2025, setting full-year earnings guidance between $1.50 and $2.50 per share on projected revenue of $8.4 billion to $8.6 billion. The midpoint of this earnings range surpasses current analyst expectations of $1.56.