Executive Summary
Advance Auto Parts (0H9G.L) reported a materially weaker QQ3 2024 compared to prior year periods, with revenue of $2.1479 billion, a YoY decline of 22.5% and QoQ decline of 19.9%. Gross profit totaled $907.9 million, delivering a gross margin of 42.3%, but operating income remained essentially breakeven at $0.40 million and net income registered a loss of $6.01 million, or earnings per share of -$0.10. The combination of lower sales and relatively fixed cost structure led to a severe compression of profitability, with an operating margin near zero and a net margin of -0.28%. EBITDA stood at approximately $52.6 million, implying an EBITDA margin around 2.4% for the quarter.
Key Performance Indicators
QoQ: -19.94% | YoY:-22.51%
QoQ: -18.52% | YoY:-24.59%
QoQ: -99.44% | YoY:-99.24%
QoQ: -113.37% | YoY:-115.04%
QoQ: -113.33% | YoY:-114.93%
Key Insights
Revenue: $2.1479B (YoY -22.5%, QoQ -19.9%); Gross Profit: $907.9M (GM 42.27%); Operating Income: $0.40M (OI Margin ~0.02%); Net Income: -$6.01M (Net Margin -0.28%); EPS: -$0.10; EBITDA: $52.55M (EBITDA Margin ~2.45%); Cash Flow from Operations: $70.12M; Free Cash Flow: $32.85M; Net Debt: $3.342B; Total Debt: $3.806B; Current Ratio: 1.34; Quick Ratio: 0.62; Inventory: $4.042B; Cash & Equivalents: ~$465–$491M range during the period; Capex: $37.27M; Dividend and Share Buybacks: Dividend paid...
Financial Highlights
Revenue: $2.1479B (YoY -22.5%, QoQ -19.9%); Gross Profit: $907.9M (GM 42.27%); Operating Income: $0.40M (OI Margin ~0.02%); Net Income: -$6.01M (Net Margin -0.28%); EPS: -$0.10; EBITDA: $52.55M (EBITDA Margin ~2.45%); Cash Flow from Operations: $70.12M; Free Cash Flow: $32.85M; Net Debt: $3.342B; Total Debt: $3.806B; Current Ratio: 1.34; Quick Ratio: 0.62; Inventory: $4.042B; Cash & Equivalents: ~$465–$491M range during the period; Capex: $37.27M; Dividend and Share Buybacks: Dividend paid ~$14.96M; Shares repurchased ~$0.98M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.15B |
-22.51% |
-19.94% |
| Gross Profit |
907.90M |
-24.59% |
-18.52% |
| Operating Income |
403.00K |
-99.24% |
-99.44% |
| Net Income |
-6.01M |
-115.04% |
-113.37% |
| EPS |
-0.10 |
-114.93% |
-113.33% |
Key Financial Ratios
operatingProfitMargin
0.02%
operatingCashFlowPerShare
$1.18
freeCashFlowPerShare
$0.55
dividendPayoutRatio
-249%
priceEarningsRatio
-95.99
Management Commentary
No earnings-call transcript data provided in the input. Consequently, no management quotes or thematic highlights are available. If a transcript becomes available, a thematic synthesis (strategy, operations, market conditions) with direct quotes would be added here.
Forward Guidance
The QQ3 2024 filing does not include explicit forward-looking targets. Given the revenue decline and margin compression, the near-term guidance implications are likely to emphasize cost discipline, working-capital optimization, and strategic review of the store footprint and supply chain. Investors should monitor: (1) any management commentary on replenishment and inventory normalization, (2) debt-reduction or covenant relief progress, (3) cash-flow resilience in a slower-growth environment, and (4) any progress on digital/e-commerce monetization and professional-installer versus DIY mix shifts. Absent explicit guidance, the assessment hinges on the company’s ability to stabilize gross margins, manage working capital, and deleverage while maintaining positive free cash flow.