Advance Auto Parts downgraded at UBS after earnings disappointment
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Advance Auto Parts (NYSE:AAP) is âtoo hard to defendâ after a big miss on earnings expectations on Tuesday evening, according to UBS analyst Michael Lasser.

Shares of the auto parts retailer reeled in pre-market trading on Wednesday, falling by as much as 15% on the inauspicious results and guidance cut. As such, Lasser said he can no longer recommend buying the stock, shifting to a Neutral rating.

âAAP is losing share with its -0.7% comp, trailing behind OâReilly Automotive (ORLY) by 830 bps and GPC's US Auto comp by 870 bps. The share loss seems to be acute on both sides of the business with DIY probably down [mid-single digits] & DIFM up [low-single digits],â he explained. âGiven the impact of inflation, unit losses are much steeper, suggesting that it is losing customers at a rapid pace. That will be hard to reverse.â

While he noted that the company has worked to shore up its supply chain and product offerings, inventory issues are likely to weigh on results moving forward.
Read more on the earnings results on Tuesday.