Why Advance Auto Parts (AAP) Shares Are Surging Today - Advance Auto Parts (NYSE:AAP)

Advance Auto Parts Inc AAP reported fourth-quarter FY22 sales growth of 3.2% year-on-year, to $2.47 billion, beating the consensus of $2.42 billion.
The revenue increase was driven by strategic pricing and new store openings. Comparable store sales increased 2.1%.
Gross profit rose 1.7% to $1.1 billion with a gross margin of 44.1%, a 60-basis points contraction.
Operating margin was 5.3% and operating income for the quarter rose 17.4% to $132 million.
The company held $269.3 million in cash and equivalents as of Dec. 31, 2022. Cash provided by operating activities for the year totaled $722.22 million.
At the end of Q4, the company had $947.3 million remaining under the share repurchase program.
Adjusted EPS of $2.88 beat the analyst consensus of $2.39.
"We expect to see further improvements in inventory availability throughout 2023, which we view as the single most important driver to accelerate topline growth," said CEO Tom Greco.
On Feb. 21, 2023, the company declared a regular cash dividend of $1.50 per share to be paid on Apr. 28, 2023, to all common stockholders of record as of Apr. 14, 2023.
Tom Greco has informed the company of his plan to retire as President and Chief Executive Officer of the company at the end of the year.
Outlook: Advance Auto Parts sees FY23 revenue of $11.4 billion - $11.6 billion versus the consensus of $11.33 billion.
The company expects FY23 EPS of $10.20 - $11.20 versus the Street view of $12.53.
Price Action: AAP shares are trading higher by 4.36% at $146.76 in premarket on the last check Tuesday.

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Why Advance Auto Parts Shares Are Surging Today

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