Advance Auto misses by $0.10, reports revs in-line; sees annual comps below expectations; CFO Mike Norona to leave the company :
- Reports Q1 (Mar) earnings of $2.51 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus of $2.61; revenues fell 1.9% year/year to $2.98 bln vs the $3 bln Capital IQ Consensus.
- "Our first quarter results did not meet our expectations...We are moving forward with urgency to drive improved performance. Our customers are our top priority and we are elevating our intensity to get the right parts to the right place at the right time as we empower our team members to serve the customer better than anyone else."
- Outlook: Due to the sales trends the Company experienced as it exited its first quarter and outlook for the balance of the year, the assumption for annual comparable store sales is now expected to be between negative 3% and negative 5% (below Street expectations)and given this updated assumption, the Company no longer expects to achieve its annual Free Cash Flow assumption of a minimum of $500 million for fiscal 2016. In addition, the Company is no longer targeting an Adjusted Operating Income (a) rate of 12% for fiscal 2016.
- Co also announced that Mike Norona, Chief Financial Officer, will be leaving the Company. Mr. Norona has agreed to remain in his current role until a successor has been named and will assist with an orderly transition. The Company has commenced an external search for a new CFO.
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