Advance Auto Parts (NYSE:AAP) Releases Quarterly Earnings Results, Beats Estimates By $0.38 EPS

Advance Auto Parts (NYSE:AAP) announced its earnings results on Thursday. The company reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38, FiscalAI reports. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The business had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.57 billion. During the same period last year, the firm posted $0.40 earnings per share. Advance Auto Parts’s quarterly revenue was up 1.2% on a year-over-year basis. Advance Auto Parts updated its FY 2026 guidance to 2.400-3.100 EPS.

Here are the key takeaways from Advance Auto Parts’ conference call:

• Advance Auto Parts reported 3.5% comparable sales growth, its strongest quarterly comp in five years, driven by solid performance in both Pro and DIY channels.
• Adjusted operating margin expanded over 400 basis points to 3.8% as merchandising improvements, product margin expansion, and expense leverage all helped profitability.
• The company said its Main Street Pro strategy is outperforming, with better assortment, service levels, and availability supporting continued share gains in a larger, higher-margin addressable market.
• Management highlighted early success from new initiatives including the ARGOS owned oil brand and the modernized Advance Rewards loyalty program, both of which are seeing strong customer engagement.
• Advance reaffirmed full-year guidance, targeting $8.5 billion in sales, 1%-2% comparable sales growth, and adjusted operating margin of 3.8%-4.5%, while noting potential near-term demand variability from pressured consumers and higher gas prices.

Advance Auto Parts Trading Up 11.6%

NYSE:AAP opened at $57.20 on Thursday. The company has a market cap of $3.45 billion, a PE ratio of 78.36, a price-to-earnings-growth ratio of 0.87 and a beta of 1.06. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. The company has a 50 day simple moving average of $53.69 and a two-hundred day simple moving average of $50.29. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $70.00.

Institutional Trading of Advance Auto Parts

Several large investors have recently modified their holdings of the company. Rafferty Asset Management LLC boosted its stake in shares of Advance Auto Parts by 28.4% in the fourth quarter. Rafferty Asset Management LLC now owns 7,446 shares of the company’s stock worth $293,000 after acquiring an additional 1,646 shares during the period. Bank of Montreal Can lifted its holdings in shares of Advance Auto Parts by 8.2% in the fourth quarter. Bank of Montreal Can now owns 9,859 shares of the company’s stock worth $387,000 after buying an additional 745 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of Advance Auto Parts during the third quarter worth $393,000. Advisory Services Network LLC purchased a new position in shares of Advance Auto Parts during the third quarter valued at about $133,000. Finally, Glenmede Investment Management LP purchased a new stake in shares of Advance Auto Parts in the third quarter worth about $295,000. Institutional investors own 88.70% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on AAP shares. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a report on Tuesday, February 17th. Truist Financial lowered their price target on Advance Auto Parts from $57.00 to $55.00 and set a “hold” rating on the stock in a research report on Wednesday, May 13th. Wells Fargo & Company upped their price objective on Advance Auto Parts from $40.00 to $50.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 11th. Royal Bank Of Canada decreased their price objective on Advance Auto Parts from $63.00 to $62.00 and set a “sector perform” rating on the stock in a report on Tuesday, May 12th. Finally, DA Davidson set a $58.00 target price on Advance Auto Parts in a research note on Tuesday, February 17th. One analyst has rated the stock with a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $52.72.

About Advance Auto Parts

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.