Green light for car parts

Chattanooga Times Free Press - - BUSINESS -

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

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