Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Advance Auto Parts, Inc. (AAP) is an automotive replacement parts provider. The Zacks Consensus Estimate for its current year earnings has been revised 107.4% downward over the last 60 days.Albany International Corp. (AIN) is an industrial materials company. The Zacks Consensus Estimate for its current year earnings has been revised 12.9% downward over the last 60 days.CDW Corporation (CDW) is an information technology (IT) solutions ...

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Core Insights - Advance Auto Parts plans to close 523 corporate stores, exit 204 independently owned locations, and close four distribution centers in the U.S. by mid-2025 to enhance operational productivity [1] - The company reported a decline in net sales from $2.2 billion to $2.1 billion, with comparable sales decreasing by 2.3%, while gross profit increased by 11% [3] Strategic Actions - The company has completed the sale of its wholesale operation, Worldpac, which will help simplify its business model and focus on core retail improvements [2][6] - A new three-year financial plan has been introduced, aiming to improve adjusted operating income margin by over 500 basis points by optimizing store operations, merchandising, and supply chain [4] Operational Improvements - Plans include standardizing the store operating model, improving labor productivity, and accelerating new store openings [4] - In merchandising, the company aims to enhance first costs, speed up market entry for parts, improve availability, and manage pricing and promotions to boost gross margin [5] Supply Chain Optimization - The company intends to consolidate distribution centers, open more market hub locations, and optimize transportation routes and freight [5] - The strategic plan focuses on strengthening the blended-box business to elevate core operations and achieve consistent profitable results [7]

Financial Data and Key Metrics Changes - Net sales from continuing operations were $2.1 billion, a 3% decrease compared to Q3 last year, with comparable store sales declining 2.3% due to consumer spending softness and external events [12][9] - Gross profit from continuing operations was $908 million, representing 42.3% of net sales, an improvement of approximately 540 basis points year-over-year, primarily due to stabilization of product costs [14] - Adjusted operating income from continuing operations was $16.7 million, or 0.8% of net sales, compared to negative 3.3% last year, with adjusted diluted loss per share from continuing operations at $0.04 compared to a loss of $1.19 in the prior year [15] Business Line Data and Key Metrics Changes - Both pro and DIY channels experienced low single-digit declines, with pro performing relatively better; average ticket growth was positive in both channels [13] - Strength was noted in categories such as batteries, filters, and engine management, while discretionary categories saw weaker sales [13] Market Data and Key Metrics Changes - The U.S. vehicle market continues to grow, with over 280 million cars on the road, and nearly 85% of those vehicles are at least four years old, indicating a strong demand for auto parts and maintenance [24] - Economic uncertainty is impacting consumer sentiment, which the company is planning for in its business strategy [24] Company Strategy and Development Direction - The company aims to achieve an adjusted operating margin of approximately 7% by the end of fiscal 2027, driven by improvements in merchandising, supply chain transformation, and store efficiency [6][23] - A thorough assessment of operational productivity has identified opportunities to improve profitability, including store footprint optimization and a focus on core retail fundamentals [22][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 results were below expectations due to macro headwinds and specific events like hurricanes and system outages, but expressed confidence in the strategic actions being taken [9][16] - The leadership team emphasized the importance of returning to customer-first principles and embedding industry-best practices to drive performance [25][20] Other Important Information - The successful completion of the Worldpac sale added $1.5 billion of liquidity to the balance sheet, providing a strong cash position exceeding total debt [31][71] - The company plans to close over 500 non-performing stores and exit relationships with more than 200 independent locations to optimize its asset base for long-term growth [38][41] Q&A Session Summary Question: Long-term outlook on reinvestment and vendor financing - The company confirmed it is maintaining a target of $2.8 billion in vendor financing capacity and plans to reinvest approximately $300 million annually in capital expenditures, factoring in inflation and cost savings [83][84]

The action in Advance Auto Parts, Inc. AAP has some investors and traders confused. The company released its earnings report Thursday and it was well short of estimates.But the shares are trading higher. This is why it is our Stock of the Day.The company reported a loss of four cents per share. This was well below the Street's estimates of a profit of 49 cents. The revenue was also well short of estimates. It came in at $2.15 billion. Analysts were looking for $2.65 billion.But sometimes the headlines don't ...

Advance Auto Parts said Thursday it will close about 500 stores by mid-2025 and cut some jobs under a restructuring effort, as demand for vehicle parts takes a hit from fewer consumers opting to repair their cars.Shares of the auto parts retailer were up about 2% despite also reporting a surprise third-quarter adjusted loss of 4 cents per share.Analysts on average were expecting a profit of 49 cents, according to data compiled by LSEG.Advance Auto Parts said demand for vehicle parts takes a hit from fewer c ...

Advance Auto Parts, Inc. (AAP) reported an adjusted loss of 4 cents per share for the third quarter of 2024 as against the Zacks Consensus Estimate of earnings of 52 cents. The company had incurred an adjusted loss of 82 cents in the year-ago quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Advance Auto generated net revenues of $2.1 billion, which missed the Zacks Consensus Estimate of $2.67 billion. Comparable store sales decreased 2.3% year over year. We projected a ...

F/ADVANCE AUTO PARTS Q3 2024 RESULTS & THREE YEAR FINANCIAL PLAN NOVEMBER 14 | 2024 Forward Looking Statements and Non-GAAP Certain statements herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," ...

KEY TAKEAWAYSAdvance Auto Parts shares surged after the auto retailer announced plans Thursday to close hundreds of stores as it posted a surprise quarterly loss. As part of a new three-year turnaround plan, the company intends to reduce its US footprint by shuttering 523 Advance corporate stores, exiting 204 independent locations, and closing four distribution centers.The retailer reported a surprise third-quarter loss of 10 cents per share, versus expectations by analysts polled by Visible Alpha of 52 cen ...

Advance Auto Parts (AAP) reported $2.15 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 21%. EPS of -$0.04 for the same period compares to -$0.82 a year ago.The reported revenue represents a surprise of -19.40% over the Zacks Consensus Estimate of $2.67 billion. With the consensus EPS estimate being $0.52, the EPS surprise was -107.69%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...