Advance Auto warns of lower 3Q earnings
ROANOKE, Va. (AP) — Shares of auto part retailer Advance Auto Parts fell 3.9 percent Monday after the company warned that its third-quarter earnings per share will fall more than 14 percent when it announces results Nov. 8.
Advance also expects a 0.5 percent decrease in third-quarter revenue because of continued soft sales, and the Roanoke, Va., company lowered its full-year earnings projection again.
The company's shares fell $2.65 to $65.78 in Monday morning trading. They are trading toward the low end of their 52-week range of $60.87 to $93.08.
Advance said it expects third-quarter earnings per share to be $1.21, which is 14.2 percent less than the $1.41 the company earned a year earlier. Revenue will drop to $1.46 billion, the company said in a statement. Comparable store sales, or sales at stores open at least a year, were expected to fall 1.8 percent, partly offset by the opening of 82 more stores in the past year.
Analysts polled by FactSet are expecting third-quarter earnings of $1.35 per share on revenue of $1.47 billion.
The company said its lower earnings per share were driven by falling sales, as well as increased promotions and advertising aimed at driving up consumer traffic.
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