Advance Auto Parts, Inc. (NYSE: AAP) 

Auto parts retailer, Advance Auto Parts came out with an upbeat second-quarter report early Tuesday, which sent its stock on an upward run. The Roanoke, Virginia-based company finished above Wall Street expectations on both profit and sales.

Advance Auto Parts also boosted its revenue forecast for the full year and announced plans to return $100 to $200 million to its shareholders through a new share buyback program.

AAP Earnings & Outlook

The company posted net income of $117.8 million, or $1.59 per share during the quarter, compared with net income of $87.0 million, or $1.17 per share, in the year-ago period.

Adjusted for one-time items, earnings came in at $1.97 per share, while revenue jumped to $2.33 billion from the earlier-year figure of $2.26 billion.

Analysts were for adjusted earnings of $1.86 on revenue of $2.27 billion, according to figures compiled by Thompson Reuters.

Same-store sales recorded a growth of 2.8%, surpassing estimates of a 0.1% increase. Looking ahead, the company hopes to report full-year revenue of $9.30 billion to $9.50 billion, compared with estimates of $9.38 billion.

Advance Auto Parts CEO Comments

Commenting on the performance, Advance Auto Parts President and Chief Executive Officer Tom Greco said, “Our relentless focus on strengthening our Customer Value Proposition while embracing an owner’s mindset on cost and cash resulted in improved sales and profit performance in the second quarter. I am encouraged by the progress our team made during the first half of 2018 and confident in our ability to drive growth throughout the balance of 2018”.