Advance Auto revs up 2Q profit by 10 percent

The company said net income rose to $75.4 million, or 79 cents a share, from $68.4 million, or 64 cents a share, in the second quarter of 2007.

Revenue increased 5.6 percent to $1.24 billion from $1.17 billion in the year-earlier period.

Analysts polled by Thomson Financial expected earnings of 72 cents per share on revenue of $1.2 billion.

Investors seemed pleased with the results, as the company's shares jumped $1.97, or 4.7 percent, to $44 in after-hours trading. The shares dropped 99 cents in regular trading to $42.03.

The company said its same-store sales increased 2.9 percent, compared to a 1.2 percent increase in last year's second quarter. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

The gain in same-store sales was driven by a 13.5 percent increase in commercial sales, offset by a 0.8 percent drop in do-it-yourself sales, the company said.

Advance Auto also opened 138 new stores in the past year, the company said, and now operates 3,325 stores in 40 states.