UBS Maintains a 'Neutral' on Advance Auto Parts (AAP); Sharp EPS Beat Moves Estimates Higher
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Price: $56.55 -1.41%
Rating Summary:
9 Buy, 30 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 30 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Advance Auto Parts (NYSE: AAP) price target raised $3 to $72.
UBS analyst said, "AAP reported 3Q’11 EPS of $1.41, which exceeded our $1.19 est. & the consensus of $1.17. AAP’s 2.2% comp increase exceeded our 2.1% est. but matched consensus of 2.2% (we est. a -2.6% DIY comp & a 11.5% DIFM comp)...Tight expense control and share buybacks gave a boost to EPS: During 3Q’11, AAP’s SG&A dollars declined -2.5% YoY. But it seems dubious that this can continue since a reduction in incentive compensation was mentioned as a primary driver. This expense is surely to return as either AAP’s sales begin to accelerate or the incentive performance metrics are recalibrated lower next year. In 3Q’11, AAP repurchased 1.7 million shares for $100 mm in shares (avg price of $58.81) with $200 mm remaining under the repurchase authorization."
UBS raises FY11 EPS estimate from $4.65 to $4.93 and FY12 from $5.14 to $5.41.
For an analyst ratings summary and ratings history on Advance Auto Parts click here. For more ratings news on Advance Auto Parts click here.
Shares of Advance Auto Parts closed at $66.37 yesterday.
UBS analyst said, "AAP reported 3Q’11 EPS of $1.41, which exceeded our $1.19 est. & the consensus of $1.17. AAP’s 2.2% comp increase exceeded our 2.1% est. but matched consensus of 2.2% (we est. a -2.6% DIY comp & a 11.5% DIFM comp)...Tight expense control and share buybacks gave a boost to EPS: During 3Q’11, AAP’s SG&A dollars declined -2.5% YoY. But it seems dubious that this can continue since a reduction in incentive compensation was mentioned as a primary driver. This expense is surely to return as either AAP’s sales begin to accelerate or the incentive performance metrics are recalibrated lower next year. In 3Q’11, AAP repurchased 1.7 million shares for $100 mm in shares (avg price of $58.81) with $200 mm remaining under the repurchase authorization."
UBS raises FY11 EPS estimate from $4.65 to $4.93 and FY12 from $5.14 to $5.41.
For an analyst ratings summary and ratings history on Advance Auto Parts click here. For more ratings news on Advance Auto Parts click here.
Shares of Advance Auto Parts closed at $66.37 yesterday.
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