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Advance Auto Parts Lowers FY22 Adj. EPS Of $12.60-$12.80 From $12.75-$13.25

Benzinga · 11/15/2022 16:33

Jeff Shepherd, executive vice president and chief financial officer, commented, "As we begin the final quarter of 2022, we're reiterating our full year guidance for net sales growth, comparable store sales and adjusted operating income margin expansion. In addition, we're updating our adjusted diluted EPS guidance range to reflect the impact of foreign currency. Finally, getting more parts closer to our customers is a top priority. Therefore, we're making strategic inventory investments to improve our availability, which is an important step to accelerate growth in 2023. Inventory is the primary driver of our reduced free cash flow guidance."

 

 

Prior Outlook

 

Updated Outlook

 

 

As of August 24, 2022

 

As of November 15, 2022

 

 

Full Year 2022

 

Full Year 2022

($ in millions, except per share data)

 

Low

 

High

 

Low

 

High

Net sales

 

$

11,000

 

 

$

11,200

 

 

$

11,000

 

 

$

11,200

 

Comparable store sales

 

 

(1.0

)%

 

 

0.0

%

 

 

(1.0

)%

 

 

0.0

%

Adjusted operating income margin (1)

 

 

9.8

%

 

 

10.0

%

 

 

9.8

%

 

 

10.0

%

Income tax rate

 

 

24.0

%

 

 

26.0

%

 

 

24.0

%

 

 

26.0

%

Adjusted diluted EPS (1, 2)

 

$

12.75

 

 

$

13.25

 

 

$

12.60

 

 

$

12.80

 

Capital expenditures

 

$

300

 

 

$

350

 

 

Minimum $350

Free cash flow (1)

 

Minimum $700

 

Minimum $300

Share repurchases

 

$

500

 

 

$

600

 

 

Maximum $600

New store and branch openings

 

 

125

 

 

 

150

 

 

 

125

 

 

 

150

 

(1)

 

For a better understanding of the company's adjusted results, refer to the reconciliation of non-GAAP adjustments in the accompanying financial tables included herein. Because of the forward-looking nature of the 2022 non-GAAP financial measures, specific quantification of the amounts that would be required to reconcile these non-GAAP financial measures to their most directly comparable GAAP financial measures are not available at this time.

(2)

 

Assumes weighted-average shares outstanding as of November 14, 2022, including 0.4 million shares repurchased subsequent to October 8, 2022 and excludes any future share repurchases made by the company. This also includes the estimated impact of foreign exchange transactions.