By Mackenzie Tatananni

Shares of Advance Auto Parts surged in premarket trading Thursday after the aftermarket car-parts retailer reaffirmed its fiscal-year guidance against a tumultuous macroeconomic backdrop.

The company reported an adjusted loss of 22 cents a share in its first quarter, narrower than the loss of 82 cents analysts had anticipated, according to FactSet. While sales declined to $2.58 billion from $2.77 billion a year earlier, the figure was above the $2.5 billion Wall Street had expected. The company also posted net income of $24 million, nearly half the $40 million reported in the first quarter of 2024.

Even as results weakened from the previous year, Advance Auto Parts reaffirmed its fiscal-year guidance. This optimism appeared to deliver a boost to the stock, which skyrocketed 29% to $40.50. Futures tracking the benchmark S&P 500 were flat.

"The recently implemented tariffs have created a highly dynamic economic environment," CEO and President Shane O'Kelly said in a statement. "Despite this, the team is staying focused on the turnaround and our path ahead."

The reaffirmed guidance reflects the company's performance to date, expected progress on strategic initiatives throughout the remainder of the year, and "planned mitigation actions for the tariffs currently in effect," O'Kelly said.

Management forecasts fiscal-year adjusted earnings per share from continuing operations in the range of $1.50 to $2.50. Sales from continuing operations are expected to fall between $8.4 billion and $8.6 billion, the company said.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 22, 2025 07:55 ET (11:55 GMT)

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