Out of the Gate: Advance Auto Parts rises

Late Thursday, Advance said its profit grew 8 percent and revenue increased by 4 percent in the quarter. Both totals surpassed Wall Street's expectations, and the Roanoke, Va., company approved a repurchase of $250 million worth of stock.

The company has bought back 11.6 million share since August, for a total of $395 million. Advance currently has 94.5 million shares outstanding.

In morning trading, Advance shares rose $3.53, or 10.2 percent, to $38.17.

Wachovia analyst Peter Benedict said the results are "a very good start to the year," as Advance posted strong gross margins. He added that the company reported strong results in several areas important to a turnaround, including costs per store, spending per employee and its return on spending.

Goldman Sachs analyst Matthew Fassler praised President and Chief Executive Darren Jackson as "a first class finance executive." Fassler wrote that financial improvements at Advance are leading to profit growth even though changes in the company's operations have not kicked in yet.

Jackson is a former executive vice president at Best Buy Co. He was named CEO of Advance Auto Parts on Nov. 29, replacing interim president and CEO John Brouillard. Jackson had been on Advance's board of directors since 2004.