Advance Auto Parts Inc. (NYSE:APP) shares steered higher after reporting third quarter earnings that beat analysts’ expectations.
The provider of automotive aftermarket parts posted adjusted earnings per share of US$1.43 for the three months ended 7 October, down from US$1.73 the same period a year ago but better than market forecasts of US$1.22.
Revenue, however, missed estimates of US$2.21bn at US$2.18bn, compared to US$2.24bn last year. Comparable store sales for the quarter dropped 3.4%.
The group still expects to meet its 2017 guidance after taking action to reduce costs.
“We executed key transformational initiatives, including a complete restructure of our field operations and professional sales leadership teams,” said chief executive Tom Greco.
“This important step in our journey sets us up well for the future. In the third quarter, we delivered improvements in cost initiatives while positioning the business for future success.”
Shares rose 18.81% to US$97.84 in early trading.