Advance Auto Parts Sees Huge Jump

Things are looking up for Advance Auto Parts Inc. as it reports a 2nd Quarter jump in profits by just over 25% with higher same store sales and even better margins. The results have exceeded the expectations of many on Wall Street who were not sure how the company might far in the changing economy of today. Due to the fact that it had such a strong 1st Quarter, Advance Auto Parts is seeing a growth in its value per share of $3.80 compared to the $3.54 it predicted earlier this year in May. After hours trading brought the stock price up to $52.70 per share, an over all rise of 28% for 2010. This is good news for a retail outfit that had seen steady business during the global meltdown, even though the auto industry had been hit so hard by the market. Part of the reason, experts have suggested, is due to the fact that consumers have been keeping their cars for a longer period of time instead of replacing them with new cars as they would have been likely to do in the past. Same store sales growths has helped, as well, with a growth in profits from the car repair side of Advance Auto Part’s core business.

Some analyst firms have said that they expect the company to benefit from the improvements it has done to its operations this quarter and they also see favorable trends in the industry, as well, which could definitely benefit it. The rise in do it yourself customers is also expected to be a big factor in coming profits.

About the Author