Advance Auto Parts, Inc. (NYSE:AAP) early Tuesday posted mixed fourth quarter earnings results, as profit missed expectations but revenue beat estimates amid rising comparable store sales.

Written by StockNews.com

The Roanoke, VA-based auto parts retailer reported adjusted Q4 EPS of $1.00, which was $0.09 worse than the Wall Street consensus estimate of $1.09.

Revenues rose 2.4% from last year to $2.08 billion, however, topping analysts’ $2.02 billion view.

AAP noted the sales increase was driven by solid comparable store sales (“comps”) growth of 3.1%. Comparable sales are a key indicator of a retailer’s health, since they measure only the year-over-year performance of stores open at least 12 months.

Looking ahead, Advance Auto forecast full-year 2017 comparable store sales growth between 0% and 2%, with 75-85 new store openings. It also expects adjusted operating income rates to improve by 15 to35 basis points, with free cash flow at a minimum of $400 million.

The company commented via press release:

“Our bottom line in the quarter reflects a planned inventory reduction along with sustained investments in the customer to accelerate top line growth. Our first priority is to deliver an outstanding experience for our customers and deliver consistent top line performance. We fully expect to balance our top and bottom line performance over time as we offset investments with a robust productivity agenda.”

...Year-to-date, AAP has declined -4.46%, versus a 5.17% rise in the benchmark S&P 500 index during the same period.

AAP currently has a StockNews.com POWR Rating of B (Buy), and is ranked #24 of 47 stocks in the Auto Parts category.