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
Revenue
Decreasing
2.15B
QoQ: -19.94% | YoY: -22.51%
Gross Profit
Decreasing
907.90M
42.27% margin
QoQ: -18.52% | YoY: -24.59%
Operating Income
Decreasing
403.00K
QoQ: -99.44% | YoY: -99.24%
Net Income
Decreasing
-6.01M
QoQ: -113.37% | YoY: -115.04%
EPS
Decreasing
-0.10
QoQ: -113.33% | YoY: -114.93%
Revenue Trend
Margin Analysis
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
Gross Profit Margin
Good
42.30%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.34
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.47
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-95.99x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.89x
Trading below book value, potential value opportunity or distressed
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