Was reading through AAP (Advanced Auto Parts) and their earnings.
"*AAP reported adjusted earnings of $3.21 per share for third-quarter 2021 (ended Oct 9, 2021), increasing 21.6% from the prior-year figure. The reported figure also beat the Zacks Consensus Estimate of $2.78 on higher-than-expected comps growth. *
Advance Auto generated net revenues of $2,621.2 million, topping the Zacks Consensus Estimate of $2,564 million and rising 3.1% from the year-ago reported figure."
So looks like EPS beat and Revenue beat but it did tank from earnings.
However, I did see this. “However, we’re experiencing construction-related delays, primarily due to a much slower-than-normal permitting process. This is attributable to more stringent guidelines associated with COVID-19, which were exacerbated by the surge of the Delta variant. We now expect the majority of the store openings planned for 2021 to shift into 2022. As a result, we’re incurring start-up costs within SG&A for the balance of the year, while realizing less than planned revenue and income. The good news is, we remain confident that once converted, these stores will be accretive to our growth trajectory.”
Also this "Well, our transactions were down in the quarter primarily due to DIY, which is the majority of our total transactions, Michael. If you remember, last year we had very robust transaction growth in DIY. On the Pro side, our sales per account up double-digits. "
Mixed bag but with potentially growth pre-factored in that is being slowed down due to slower than expected expansion, that may have led to the down side. However, if AZO is not in the same situation, perhaps it does well?
I would guess that perhaps due to still slow auto manufacturing and used car prices still at pretty high levels, it would encourage more repairs and as a result more tools.
