Advance Auto Parts adjusted profit more than triples and sales rise, beating expectations

Advance Auto Parts Inc. reported fiscal a first-quarter adjusted profit that more than tripled and beat expectations, boosted by record sales growth amid strong demand from do-it-yourself and professional customers. The auto parts retailer’s stock was still inactive in premarket trading. Net income for the quarter to April 24 rose to $185.9 million, or $2.81 a share, from $43.6 million, or 63 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew 234.0% to $3.34, beating the FactSet consensus of $3.05. Sales increased 23.4% to $3.33 billion, above the FactSet consensus of $3.30 billion, as same-store sales jumped 24.7% to beat expectations of 22.4% growth. Gross profit as a percentage of sales improved to 44.6% from 43.5%. For the full fiscal year, the company raised its net sales outlook to $10.40 billion to $10.60 billion from $10.20 billion to $10.40 billion and its same-store sales guidance range to growth of 4% to 6% from growth of 2% to 4%. The stock has rallied 23.6% year to date, while the S&P 500 has advanced 11.9%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.