Shares of Advance Auto Parts rose Thursday after the company reported a 25 percent gain in quarterly earnings and lifted its outlook for the year.
Advance Auto Parts reported a strong fiscal second-quarter after the market closed Wednesday, saying its bottom line was helped by the net addition of 90 new stores over the last year. The company also raised its 2010 earnings outlook to $3.70 to $3.80 per share.
After a moribund 2009, the auto industry is slowly recovering from one of the worst downturns it has ever faced. Advance Auto Parts, which relies on the do-it-yourself car repair market, has been expanding its base of retail stores during the first half of the year.
Wedbush Morgan analyst Camilo Lyon said Advance Auto Parts posted "another blowout quarter" and reiterated an "Outperform" rating on the company's stock.
However, Scot Ciccarelli of RBC Capital Markets noted that the company's raised earnings-per-share guidance is based in part by big company stock buybacks.
Shares of Advance Auto Parts gained $2.84 cents, or 5.5 percent, to $54.75 in afternoon trading.
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