Advance Auto Parts (NYSE:AAP) reported third-quarter earnings of $2.10 per share on Tuesday, which beat the analyst consensus estimate of $2.05 by 2.44%. This is an 11.1% increase over earnings of $1.89 per share from the same period last year.
The company, based in Raleigh, North Carolina, reported quarterly sales of $2.31 billion, which beat the analyst consensus estimate of $2.3 billion by 0.43%. This is a 1.5% increase over sales of $2.275 billion the same period last year.
Adjusted gross profit margin was 43.9% of net sales in the third quarter of 2019, a 39-basis-point decrease from the third quarter of 2018. The decrease was primarily driven by an approximate $14.0-million increase in coupon redemptions in connection with the impact of the launch of the Company's enhanced loyalty program initiatives.
The headwinds were partially offset by improvements in operational productivity relating to the Company's ability to leverage its supply chain. The company's GAAP Gross profit margin decreased to 43.8% from 44.3% in the third quarter of the prior year.
Advance Auto Parts also reaffirmed fiscal year 2019 sales guidance of $9.65 billion-$9.75 billion versus the $9.72 billion estimate.
During the third quarter, the company repurchased one million shares of its common stock at an aggregate amount of $140.0 million under the August 8, 2018 share repurchase program for an average price of $141.54.
On August 7, 2019 the Company's Board of Directors authorized a new $400-million share repurchase program that replaced the previous $600- million share repurchase program.
Shares dropped $10.79, or 6.4%, to $158.03
