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Released: February 26, 2025
11:45 AM EST
Essential Details
- Advance Auto Parts’ shares decreased significantly on Wednesday as the firm’s first quarter sales projections did not meet expectations.
- The fourth quarter sales surpassed analysts’ forecasts, and the retailer reported a smaller-than-anticipated adjusted loss.
- Experts at JPMorgan highlighted that the circumstances for Advance Auto Parts are intricate this quarter, with sales expected to be mainly focused in the latter half of 2025.
Advance Auto Parts (AAP) experienced a sharp decline in its stock on Wednesday due to unsatisfactory first quarter sales forecasts, even after a robust performance in the fourth quarter. BNB (Binance Coin) Cost Forecast for March 14
The company disclosed sales of $2 billion for the last quarter of 2024, representing a slight year-over-year decrease, yet exceeding analysts’ expectations from a Visible Alpha analysis. The adjusted loss per share was $1.18, and comparable store sales dropped by 1%, both performing better than market consensus.
The retailer’s sales forecast for the upcoming quarter falls short of market expectations. Advance Auto Parts projects first quarter sales around $2.5 billion, with comparable sales declining by 2%, while analysts had estimated $2.61 billion and a decrease of 0.51%.
JPMorgan Describes the Situation as Intricate, Sales More Likely in the Latter Half of 2025
Experts at JPMorgan noted in their commentary following the report that the outcomes and predictions create a complicated scenario, with very limited visibility, and are more likely to align with the latter half of the year as anticipated.
Last November, Advance Auto Parts revealed a restructuring strategy that includes closing over 700 company-owned and independent outlets.
Advance Auto Parts’ shares fell nearly 13% on Wednesday and have lost almost a third of their value over the past year, remaining close to a decade-low.
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Advance Auto Parts. Advance Auto Parts has published its performance summary for the fourth quarter and the entire year of 2024.
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JPMorgan Chase. Numerous developments have occurred; the latter half of fiscal year 2025 appears intricate.
