Advance Auto Parts (AAP) shares plunged after the company announced quarterly earnings that came in well short of expectations and cut its outlook for the full year. The earnings news upstaged the sale of its wholesale distribution business.

The retailer reported diluted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of 75 cents, down from $1.32𝄹 a year ear൩lier and missing analysts’ expectations of 92 cents. Net sales were roughly flat at $2.68 billion, slightly above expectations. 

Advance Auto Parts cut its full year revenue guidance to between $11.15 billion and $11.25 billion, while its diluted EPS is projected at between $2 and $2.50. In both cases, the top end of the range wa♔s below the ana🐠lyst consensus. 

Shares in the company were down 16% in recent trading. The stock fell as much as 22% in early trading and was trading at its lowest level since last October.൲

Weak Start to the Current Quarter

澳洲幸运5官方开奖结果体彩网:Chief Executive Officer Shane O’Kelly pointed to “a challenging demand environment,” in the second𓂃 quarter, adding that the company continues to “make progress on our decisive actions.”

During a call with analysts, Chief Financial Officer Ryan Grimsland said that "consumers continue to feel the weight of an uncertain macroeconomic climate," according a transcript provided by Seeking Alpha.

Grimsland added that the current quarter has gotten off to a weaker start, which factored into the lower ful💛l-year outlook. However, he said the company remains confident there will be a recovery given there are so many old vehicles in circulation and auto repair is largely not a discretionary expense.

Selling Worldpac

Advance Auto also announced the sale of Worldpac, its wholesale distribution unit, for $1.5 billion. The unit was bought by funds managed by The Carlyle Group (CG), the company said Wednesday. 

"The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business,” O’Kelly said. “Proceeds from the transaction will provide greater financial flexibility as we continue our strategic and operational review.”