Advance Auto Parts Upgraded Earnings Outlook Driven by Tariff Refund
Dow Jones
Aug 20
1147 ET - Advance Auto Parts' adjusted earnings upgrade was largely due to tariff refunds. Roth analyst Scott Stember notes that the company is lifting adjusted EPS guidance to "$2.60-$3.30 (from $2.40-$3.10) mainly on the tariff refund, only partially offset by higher assumed interest income." He notes that everything else remains unchanged, which assumes sales of $8.485 billion-$8.575billion, same-store sales growth of 1%-2% and adjusted operating margin of 3.8%-4.5%. Free cash flow is still expected at about $100 million. "Lastly, the company now expects 30-35 new stores (previously 40-45), although while still adding 10-15 new market hubs, this year," Stember says.
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