Shares of Advance Auto Parts Inc. (AAP, Financial) jumped more than 6% on Tuesday after reporting first-quarter revenue of $2.7 billion and earnings of 91 cents per share on Monday. Earnings fell 68 cents short of analysts' estimates, but revenue beat expectations by $20 million.
The adjusted gross profit declined 10.9% to $1.2 billion, driven by lower sales volumes. The adjusted gross profit margin was 43.5% of net sales, down 113 basis point from the prior-year quarter as a result of product mix and cost increases. Further, the GAAP gross profit margin decreased 70 basis points to 43.5%.
The adjusted operating income totaled $104.3 million, a decrease of 57.2% from a year ago. The adjusted operating income margin was 3.9% of net sales, a decrease of 439 basis points.
On a GAAP basis, the operating income was $78.4 million, or 2.9% of net sales, down 414 basis points from the first quarter of 2019.
The operating cash flow reached $10.9 million, down from $204.5 million in the year-ago quarter. The free cash flow was -$72.1 million, a decrease of 150.3%. However, a few days ago, the company declared a regular cash dividend of 25 cents per share to be paid on July 3.
During the quarter ended March 31, Diamond Hill Capital (Trades, Portfolio) boosted its holding 109% to 655,398 shares, Steven Cohen (Trades, Portfolio) increased his position 48% to 361,279 shares and Ray Dalio (Trades, Portfolio) bumped his holding 21% to 21,620 shares. Jim Simons (Trades, Portfolio)' Renaissance Technologies initiated a new position of 51,800 shares.
Shares of Baidu Inc. (BIDU, Financial) gained almost 6% on Tuesday after the company posted first-quarter results. Revenue declined 11.4% from the prior-year quarter to $3.18 billion, but beat estimates by $90 million.The company posted earnings of $1.25 per share, beating expectations by 69 cents.
"With the pandemic coming under control in China, offline activities are rebounding and Baidu stands to benefit from a restart of the Chinese economy," Co-Founder and CEO Robin Li said.
Online marketing revenues were 14.2 billion yuan ($2.01 billion), decreasing 19% year over year. Other revenues were 8.3 billion yuan, up 28% year over year, fueled by by the strong growth in iQIYI membership, cloud service and smart devices.
The operating loss was 437 million yuan and the operating margin was -2%. The non-GAAP operating income was 1.4 billion yuan and the non-GAAP operating margin was 6%.
Moreover, the adjusted earnings before interest taxes depreciation and amortization was 2.9 billion yuan and the adjusted Ebitda margin reached 13%.
The company returned cash to investors in the form of stock buybacks. It repurchased $185 million worth, totaling approximately $1.4 billion under the 2018 and 2019 repurchase programs. It also approved a new share repurchase program for up to $1 billion.
Looking ahead to the second quarter, the company expects revenue to be between 25 billion and 27.3 billion yuan.
During the quarter ended March 31, Charles Brandes (Trades, Portfolio) boosted his position by 87% to 310,500 shares and Simons' firm boosted its stake almost 200% to 5,710,043 shares. Jeremy Grantham (Trades, Portfolio) reduced his holding by 71% to 10,140 shares and the Tweedy Browne (Trades, Portfolio) Global Value Fund trimmed its position by 21% to 812,797 shares.
Disclosure: The author holds no position in any stocks mentioned.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
