The Yahoo Finance Live team checks in on shares of Advance Auto Parts after the retailer reported a first quarter earnings that greatly missed analyst expectations.
- Also, we've got to talk about Advance Auto Parts. Shares plummeting today. It was down more than 24% in premarket. As of right now, you're seeing down 30% as trading has commenced here. The company missing analyst's expectations on the top and bottom line, but it's really earnings that investors are disappointed with here as well as the guidance. Earnings per share for Q1 that came in at $0.72, with analysts expecting $2.60 a share.
The company also lowered its full-year earnings guidance, now expecting $6 to $6.50 revised down from $10.20 to $11.20. That being the previous range. So this not a good day, trading wise, for Advance Auto Parts, ticker symbol AAP, as we were showing there on the day. And there, you're seeing that decline here that ensued after this report dropped.
- Yeah, and just a couple of quick comments that I'm seeing from analysts here. The analyst over at Truist, Scott Siccarelli saying, whatever could go wrong, did go wrong here. And he talks about they reversed their prior pricing strategy, and that caused a prior downgrade from Truist. But he says, quote, "The unravel has been far faster and more violent than we had anticipated."
And that echoes comments from the company itself, the CEO saying that things were worse than they expected, and that it is a competitive environment right now, which, again, shows that-- I mean, what that seems to indicate is on the inflation front, you are seeing areas where pricing has come down.
- It's just not in what people are spending money on right now.
- Right. Yeah. Well, you never want to hear an acknowledgment of Murphy's law within any type of earnings coverage.