The Bapcor Ltd (ASX: BAP) share price is pushing higher on Tuesday morning.
At the time of writing, the auto parts retailer's shares are up 0.5% to $7.60.
Image source: Getty Images
Why is the Bapcor share price pushing higher?
Investors have been bidding the Bapcor share price higher today following the release of a trading update at its annual general meeting.
According to the release, Bapcor has had a solid start to FY 2022 with overall group revenue flat during the first quarter compared to the prior corresponding period.
Management believes this result demonstrates the resilience and non-discretionary nature of Bapcor's businesses. It notes that with NSW, VIC, ACT and NZ impacted by prolonged lockdowns, at least 70% of its stores were affected.
This solid start was driven largely by its Bapcor Trade, Retail Online, and Specialist Wholesale businesses, which all reported quarterly revenue growth over the prior corresponding period. This offset sales declines in its NZ and Autobarn businesses.
One slight negative that could be holding back the Bapcor share price today is its higher cost base and softer margins. However, management expects its margins to revert when lockdowns end.
What about the rest of the year?
Management continues to target FY 2022 pro forma earnings at least in line with what was achieved in FY 2021.
This is expected to be predominantly driven by its second half performance. Management expects its first half earnings to be softer than the prior corresponding period, whereas it expects its second half earnings to be stronger than the same period in FY 2021.
Following today's gain, the Bapcor share price has narrowed its year to date decline to approximately 3.5%. This compares to a 10.4% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.
