Advanced Auto Parts (NYSE: AAP)
On Tuesday before the market opened, Advanced Auto Parts announced third quarter earnings that topped analyst estimates and sent shares rallying in the premarket.
They reported earnings per share of $1.43 on $2.18 billion in revenues while analyst were looking for $1.21 earnings per share on $2.21 billion in revenues. Same store sales fell to 3.4% and the company remained confident in a 1-3% decline in same store sales for 2017.
CEO Comments
“We continue to take steps to build the foundation for future growth. We executed key transformational initiatives, including a complete restructure of our field operations and professional sales leadership teams. 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. We remain on track to deliver our 2017 guidance,” said Tom Greco, President and Chief Executive Officer.
AAP Technicals
Shares of Advanced Auto Parts rallied in the premarket following strong third quarter results. Prices hit premarket highs of $96 before pulling back slightly, marking a 16.6% jump in value from Monday’s close of $82.28.
Look for shares to be extra volatile today as more traders will be paying attention to this stock. If shares continue to rally, look for the $100 level at act as major resistance followed up by $105 and $110. Support should be met at $92 and $90.
