Advance Auto Parts CEO will retire after 8 years

The company reported $1.95 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.09 by $0.14. The estimated revenue was of $2.33B. Evercore ISI lowered shares of Advance Auto Parts from a “buy” rating to a “hold” rating and lifted their price objective for the stock from $165.00 to $179.00 in a research note on Wednesday, August 5th.

Advance Auto Parts CEO Darren Jackson elaborated, “These results were unfavorably affected by the continuing demands of the General Parts integration as well as a few headwinds due to foreign exchange”.

American worldwide Group Inc decreased its stake in Advance Auto Parts Inc (NYSE:AAP) by 81.64% based on its latest Q3 2015 regulatory filing with the SEC. Prior to Thursday, the company’s share-price had been rising on news of the Starboard campaign, increasing from roughly $171.53 a share on September 29 – its closing price on the day before the activist launched its public campaign. With the volume soaring to 1,379,738 shares, the last trade was called at $194.11. Earnings per share were $1.95. “Year-to-Date the stock performance stands at 22%”. These will lead to one-time expenses of $10-$15 million this year, taking the total expected one-time expenses to $101-$120 million. They issued a “hold” rating and a $170.00 price target on the stock. The 52-week low of the share price is $142.63. The company has a 52-week high of $201.24. Recent trading put Advance Auto Parts Incorporated stock at a -25.62 change from the 50 day moving average, which is -13.47%. The 52-week low of the share price is $137.17.

The auto parts retailer reported that for the third quarter ended October 10, same-store sales increased.5%.

To be fair, it’s arguably preferable to see Advance Auto Parts bite this bullet today in order to set themselves up for a stronger 2016, especially with the added accountability of having Starboard representatives working to create value for shareholders. The company has a market cap of $12,055 million and the number of outstanding shares has been calculated to be 73,217,397 shares. (Advance) is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company’s stores carry a product line for cars, vans, sport utility vehicles and light trucks. The company serves its do-it-for-me (commercial) customers and do-it-yourself (DIY) customers via a variety of channels which range from conventional physical store locations to e commerce websites that are self serving. On December 31, 2012, the Company acquired B.W.P. Distributors, Inc.