Advance Auto Parts (NYSE:AAP) shares plunged more than 25% yesterday after the company posted very weak Q1 results and revised its 2023 guidance well-below consensus driven by management's expectation for a continued challenging competitive environment.

Q1 EPS came in at $0.72, compared to the Street estimate of $2.56. Revenue was $3.4 billion, compared to the Street estimate of $3.43 billion. The company provided its outlook for fiscal 2023, expecting EPS to be in the range of $6.00-$6.50, compared to the Street estimate of $10.64, and revenue in the range of $11.2-11.3 billion, compared to the Street estimate of $11.43 billion.