ROANOKE, Virginia — Advance Auto Parts Inc. reported a dip in its third-quarter profit, a disappointing outlook and disclosed CEO Darren R. Jackson will retire in January.
Jackson cited the costs related to integrating General Parts International and a stronger U.S. dollar as factors in weighing down results for the quarter. The third-quarter "shortfall" partly prompted the company to cut its guidance.
Shares of the Roanoke, Virginia-based auto parts retailer's stock fell more than 11 percent in premarket trading.
The company reported a 1.4 percent drop in third-quarter profit to $120.5 million, or $1.63 per share. Earnings, adjusted for restructuring costs and amortization costs, came to $1.95 per share.
The results missed Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $2.06 per share.
The auto parts retailer posted revenue of $2.3 billion in the period, marking a slight gain but also falling short of Street forecasts. Ten analysts surveyed by Zacks expected $2.33 billion.
Advance Auto Parts expects full-year earnings in the range of $7.75 to $7.90 per share. That's down from prior guidance in the range of $8.10 to $8.30 per share.
Jackson is retiring as CEO effective Jan. 2, and will be replaced in the interim by George Sherman, who will also retain his position as president of the company.
Also, the company named Starboard Value LP CEO Jeffrey C. Smith to its board of directors, expanding the board to 13 members. In September, the activist investor purchased a 3.7 percent interest in Advance Auto Parts and said the auto parts retailer is undervalued.
The company's shares fell $21.66, or 11.1 percent, to $173.01 on premarket trading an hour before the market open. Advance Auto Parts shares had been up 22 percent since the beginning of the year. The stock had increased 34 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AAP at http://www.zacks.com/ap/AAP
Keywords: Advance Auto Parts, Earnings Report