Divetiture Driven Rally Reverses After Guidance Cut And Weak Earnings

Advance Auto Parts Lowers Earnings Outlook, Shares Plunge

Divetiture-Driven Rally Reverses After Guidance Cut and Weak Earnings

Advance Auto Parts shares reversed their recent rally after the company cut its earnings outlook and reported weaker-than-expected earnings.

Missed Earnings Estimates

The company reported earnings per share of 75 cents, missing the Street view of $1.07.

Revenue came in at $2.4 billion, slightly above estimates of $2.39 billion.

Outlook Cut

Advance Auto Parts lowered its earnings outlook for the year to a range of $2 to $2.50 per share, down from a previous range of $2.25 to $2.75 per share.

Shares Plunge

Shares of Advance Auto Parts fell 6.35% in premarket trading on Thursday.

The company's shares are down over 21% in the past year.

Reasons for the Downturn

Analysts cited several reasons for the company's disappointing results and lowered outlook, including:

• A decline in same-store sales
• Rising costs
• Competition from online retailers

Analysts' Reactions

Analysts were disappointed with the company's results and lowered their ratings on the stock.

Some analysts cited the challenging retail environment as a factor in the company's struggles.

Conclusion

Advance Auto Parts is facing a number of challenges, including declining sales, rising costs, and competition from online retailers.

The company's lowered earnings outlook and weak earnings report have raised concerns among investors.