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Jul 17, 2021
Advance Auto Parts Q2 2021 Earnings Report
Advance Auto Parts' Q2 2021 performance was highlighted by a 5.9% increase in net sales, driven by a strong recovery in the professional business, and an adjusted diluted EPS increase of 15.3%.
Key Takeaways
Advance Auto Parts reported a 5.9% increase in net sales to $2.6 billion, with comparable store sales up by 5.8%. Adjusted diluted EPS increased by 15.3% to $3.40. The company returned $457.9 million to shareholders through share repurchases and dividends.
Net sales increased 5.9% to $2.6 billion.
Comparable store sales increased 5.8%, with a 13.3% increase on a two-year stack.
Diluted EPS was $2.74, flat compared to Q2 2020; adjusted diluted EPS increased 15.3% to $3.40.
The company returned $457.9 million to shareholders through share repurchases and quarterly cash dividends.
Forward Guidance
Advance Auto Parts updated its full-year 2021 financial guidance to reflect positive first-half results, while acknowledging potential volatility in the second half of the year.
Positive Outlook
- Net sales are projected to be between $10.6 billion and $10.8 billion.
- Comparable store sales are expected to increase by 6.0% to 8.0%.
- Adjusted operating income margin is anticipated to be between 9.2% and 9.4%.
- Minimum free cash flow is projected to be $700 million.
- Share repurchases are expected to be between $700 million and $900 million.
Challenges Ahead
- The guidance acknowledges the potential for volatility in the back half of the year.
- The company is cognizant of potential impacts from the COVID-19 pandemic.
- Guidance assumes an income tax rate between 24% and 26%.
- Capital expenditures are projected to be between $300 million and $350 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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