Advance Auto Parts (NYSE:AAP) Shares Gap Up Following Better-Than-Expected Earnings

Advance Auto Parts, Inc. (NYSE:AAP)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $58.22, but opened at $63.00. Advance Auto Parts shares last traded at $57.1450, with a volume of 803,935 shares changing hands.

The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.41 by $0.45. Advance Auto Parts had a negative net margin of 4.37% and a positive return on equity of 0.64%. The firm had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.95 billion. During the same quarter in the prior year, the firm earned ($10.16) EPS. Advance Auto Parts’s revenue for the quarter was down 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS.

Trending Headlines about Advance Auto Parts

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Q4 earnings beat and profit swing — AAP reported $0.86 EPS vs. $0.41 consensus and revenue of $1.97B (slightly above estimates); the company swung to a profit after a prior-year loss, signaling operational improvement that drove the stock higher. Advance Auto Parts Stock Jumps After Earnings. The Turnaround Continues.
• Positive Sentiment: Beat confirmed by multiple outlets and company materials — Coverage from Zacks and the company press release/slide deck corroborate the beat and detail execution on cost and store decisions, reinforcing investor confidence in the turnaround traction. Advance Auto Parts (AAP) Beats Q4 Earnings and Revenue Estimates
• Neutral Sentiment: FY‑2026 guidance is mixed — Management set EPS guidance of $2.40–$3.10 (around/above consensus midpoint) but issued revenue guidance of $8.5–8.6B, slightly below consensus, leaving uncertainty about top‑line recovery versus margin improvement. Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results; Releases Full Year 2026 Guidance
• Neutral Sentiment: Analyst activity remains mixed — Some firms (e.g., Wells Fargo) raised price targets but kept neutral/equal-weight stances, reflecting cautious views on demand even as execution improves. Benzinga coverage of analyst action
• Negative Sentiment: Revenue decline and store closures persist — Q4 revenue was down ~1.2% YoY and management is still closing underperforming stores as part of restructuring, which pressures top-line growth even while margins/profitability recover. Advance Auto Swings to a Profit Amid Store Closures

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on AAP. Citigroup raised Advance Auto Parts from a “hold” rating to a “buy” rating in a report on Wednesday, January 21st. DA Davidson restated a “neutral” rating and set a $47.00 price objective on shares of Advance Auto Parts in a research report on Thursday, February 5th. Northcoast Research raised shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 target price on the stock in a report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (d)” rating on shares of Advance Auto Parts in a research note on Wednesday, January 21st. Finally, Roth Mkm restated a “neutral” rating and issued a $55.00 price objective (up previously from $50.00) on shares of Advance Auto Parts in a research report on Monday, October 27th. Three equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $51.41.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AAP. Savoir Faire Capital Management L.P. boosted its stake in shares of Advance Auto Parts by 11.4% during the 3rd quarter. Savoir Faire Capital Management L.P. now owns 226,990 shares of the company’s stock worth $13,937,000 after purchasing an additional 23,172 shares during the last quarter. Federated Hermes Inc. lifted its stake in shares of Advance Auto Parts by 12.8% during the third quarter. Federated Hermes Inc. now owns 2,694,027 shares of the company’s stock valued at $165,413,000 after buying an additional 306,702 shares during the period. Parkwood LLC acquired a new stake in Advance Auto Parts during the second quarter worth approximately $16,922,000. JPMorgan Chase & Co. grew its stake in Advance Auto Parts by 436.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 266,111 shares of the company’s stock worth $12,372,000 after acquiring an additional 216,504 shares during the period. Finally, Boston Partners grew its stake in Advance Auto Parts by 141.5% in the 2nd quarter. Boston Partners now owns 41,891 shares of the company’s stock worth $1,948,000 after acquiring an additional 24,545 shares during the period. 88.70% of the stock is owned by hedge funds and other institutional investors.

Advance Auto Parts Price Performance

The company has a market capitalization of $3.51 billion, a price-to-earnings ratio of -9.30 and a beta of 1.14. The company has a fifty day simple moving average of $45.73 and a two-hundred day simple moving average of $52.36. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.88 and a current ratio of 1.73.

Advance Auto Parts Company Profile

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.