J.P. Morgan Neutral On Advance Auto Parts (AAP)

J.P. Morgan Chase & Co. has a Neutral rating on Advance Auto Parts, Inc. AAP after it reported earnings yesterday. In the research note sent to clients, J.P. Morgan writes, "Overall, we believe comps were able to hit even the higher expectations on the Street, and only fell a touch below ORLY's 11% mark two weeks ago. Moreover, gross margin expansion continues to be impressive, in our view. The three big questions/ themes we have are:(1) the EBIT flow-through on comps was a bit disappointing in light of sales that came close to 2Q levels, but EPS fell $0.13 below 2Q profitability; (2) share repurchases were pulled back in the quarter, with the average price of $54, implying activity was stopped early in the quarter; and (3) is the guidance indicative of a change in sales/margin trends?" Shares of AAP gained 71 cents yesterday to close at $66.72, a gain of 1%.