Green light for car parts
Advance Auto Parts reversed a six-week slump after the Roanoke, Virginia car parts supplier said its third-quarter earnings weren’t as bad as investors had expected.
Advance Auto shares jumped 16.3 percent, their biggest one-day gain ever. Sales and profits both slumped in the three months ending Oct. 7, but with the stock trading at a four-year low, investors took consolation in CEO Tom Greco’s statement that Advance is on track to hit its revised 2017 earnings targets.
Advance Auto operates over 5,000 stores across the U.S. and employs about 73,000 people. The stock had tumbled about 25 percent since August, when Greco warned that “industry headwinds” would mean Advance would fail to achieve the increase in sales and profitability that it targeted at the start of the year.
Advance Auto Parts and its competitors have all seen their stocks battered this year as Wall Street worries about declining auto sales and growing online competition.
AP *annualized Source: FactSet