AAP - Advance Auto Parts gains after earnings topper CEO retirement

Advance Auto Parts ( NYSE: AAP ) rose 1.33% in early trading on Tuesday after beating expectations with its Q4 earnings report.

Adjusted gross profit margin came on in 46.9% of sales, which was was relatively flat compared to a year ago. Improvements in strategic pricing, channel mix favorability and owned brand expansion were partially offset by product cost inflation.

On the balance sheet, cash provided by operating activities was $0.7B for the full year vs. $1.1B for the prior year. The decrease was primarily driven by lower net income and working capital. Free cash flow for the full year 2022 was $298.2M, compared with $822.6M for the prior year.

The auto supplier also formed a succession committee to search for a new CEO following the announced retirement of Tom Greco at the end of the year.

Looking ahead, AAP said it is elevating its performance to improve topline growth and share gains while delivering operating income margin expansion. Sales of $11.4B to $11.6B is anticipated vs. $11.33B and EPS of $10.20 to $11.20 vs. $12.65 consensus.

Shares of AAP have traded in a range of $137.93 to $231.43 over the last 52 weeks.

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