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

Advance Auto Parts (NYSE:AAP) announced its quarterly earnings results on Thursday. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.38, FiscalAI reports. The company had revenue of $2.61 billion for the quarter, compared to analysts’ expectations of $2.57 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. Advance Auto Parts’s revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.40 EPS. 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 Stock Up 14.3%

NYSE AAP opened at $58.59 on Friday. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.87 and a current ratio of 1.75. The company has a market capitalization of $3.53 billion, a P/E ratio of 80.26, a P/E/G ratio of 0.90 and a beta of 1.06. Advance Auto Parts has a one year low of $37.89 and a one year high of $70.00. The stock has a 50 day moving average price of $53.84 and a 200-day moving average price of $50.37.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, July 10th. Advance Auto Parts’s dividend payout ratio is currently 136.99%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on AAP. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a “buy” rating in a research note on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Advance Auto Parts in a research note on Friday, May 15th. Truist Financial set a $62.00 target price on shares of Advance Auto Parts in a research note on Thursday. Citigroup upped their price target on shares of Advance Auto Parts from $55.00 to $57.00 and gave the company a “neutral” rating in a research report on Tuesday, May 12th. Finally, Wells Fargo & Company reissued a “negative” rating and issued a $60.00 target price on shares of Advance Auto Parts in a report on Friday. Two analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $54.04.

Advance Auto Parts News Roundup

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

• Positive Sentiment: Advance Auto Parts posted adjusted EPS of $0.77 versus the $0.39 estimate and revenue of $2.61 billion versus $2.57 billion expected, a clear earnings and sales beat that helped drive the stock higher. Why Advance Auto Parts Stock Skyrocketed Today
• Positive Sentiment: The company reported its strongest same-store sales growth in five years, with comparable sales up 3.5%, including mid-single-digit growth in the Pro channel and low-single-digit growth in DIY, suggesting the core business is improving. Advance Auto Parts Gets Sales Boost From Pro Business
• Positive Sentiment: Margins expanded sharply, with adjusted operating margin rising to 3.8% from a year ago, which investors viewed as a sign that the turnaround is gaining traction and earnings power is improving. Highly Short Advance Auto Parts Warns On Consumer Spending
• Neutral Sentiment: Advance Auto Parts reaffirmed full-year 2026 guidance rather than raising it, with EPS guidance of $2.40 to $3.10 and revenue guidance of about $8.5 billion to $8.6 billion. That keeps expectations intact, but the lack of a guidance raise may limit some upside. Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance
• Neutral Sentiment: The company also declared a quarterly dividend of $0.25 per share, signaling continued shareholder returns, though this was not the main driver of the stock move.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AAP. Caitong International Asset Management Co. Ltd bought a new position in shares of Advance Auto Parts during the 3rd quarter valued at approximately $31,000. Smartleaf Asset Management LLC lifted its position in Advance Auto Parts by 290.3% in the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after buying an additional 688 shares during the last quarter. Headlands Technologies LLC bought a new stake in Advance Auto Parts in the second quarter worth $101,000. Kestra Advisory Services LLC bought a new stake in Advance Auto Parts in the fourth quarter worth $107,000. Finally, LGT Financial Advisors LLC bought a new stake in Advance Auto Parts in the third quarter worth $123,000. 88.70% of the stock is currently owned by institutional investors.

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.