Shares of Advance Auto Parts Inc. AAP sank 6.5% in premarket trading Wednesday, after the auto parts seller reported a surprise large fiscal third-quarter loss and slashed its full-year outlook, while announced a cost-cutting plan aimed at saving $150 million a year. For the quarter to Oct. 7, the company swung to a loss of $48.6 million, or 82 cents a share, from net income of $115.9 million, or $1.92 a share, in the year-ago period. The FactSet consensus was for earnings per share of $1.44. The company said bottom-line results were hurt a change in estimates for inventory reserves, that impacted results by $119 million, and higher product and supply chain costs. Sales rose 2.9% to $2.72 billion, above the FactSet consensus of $2.68 billion, as same-store sales growth of 1.2% beat expectations of a 0.3% rise. Separately, the company said it is looking into divesting its Worldpac and Canada businesses. For fiscal 2023, the company cut its EPS guidance range to $1.40 to $1.80 from $4.50 to $5.10 and trimmed its sales range to $11.25 billion to $11.30 billion from $11.25 billion to $1.35 billion. The stock has plunged 60.3% year to date through Tuesday, while the S&P 500 SPX has climbed 17.1%.
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