Advance Auto Parts (NYSE:AAP) is set to give its latest quarterly earnings report on Thursday, 2025-08-14. Here's what investors need to know before the announcement.
Analysts estimate that Advance Auto Parts will report an earnings per share (EPS) of $0.59.
The announcement from Advance Auto Parts is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.47, leading to a 1.02% drop in the share price the following trading session.
Here's a look at Advance Auto Parts's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.69 | -1.18 | 0.54 | 0.95 |
| EPS Actual | -0.22 | -1.18 | -0.04 | 0.75 |
| Price Change % | -1.0% | -2.0% | -9.0% | -4.0% |
Performance of Advance Auto Parts Shares
Shares of Advance Auto Parts were trading at $59.11 as of August 12. Over the last 52-week period, shares are down 3.85%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Observations about Advance Auto Parts
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Advance Auto Parts.
A total of 19 analyst ratings have been received for Advance Auto Parts, with the consensus rating being Neutral. The average one-year price target stands at $49.11, suggesting a potential 16.92% downside.
Comparing Ratings Among Industry Peers
The analysis below examines the analyst ratings and average 1-year price targets of Sonic Automotive, Asbury Automotive Group and Valvoline, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Sonic Automotive, with an average 1-year price target of $84.86, suggesting a potential 43.56% upside.
- Analysts currently favor an Underperform trajectory for Asbury Automotive Group, with an average 1-year price target of $258.33, suggesting a potential 337.03% upside.
- Analysts currently favor an Outperform trajectory for Valvoline, with an average 1-year price target of $44.33, suggesting a potential 25.0% downside.
Summary of Peers Analysis
Within the peer analysis summary, vital metrics for Sonic Automotive, Asbury Automotive Group and Valvoline are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Advance Auto Parts | Neutral | -6.82% | $1.11B | 1.10% |
| Sonic Automotive | Buy | 5.91% | $602.20M | -4.30% |
| Asbury Automotive Group | Underperform | 2.99% | $751.90M | 4.13% |
| Valvoline | Outperform | 4.18% | $177.60M | 20.10% |
Key Takeaway:
Advance Auto Parts is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit and return on equity.
Unveiling the Story Behind Advance Auto Parts
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
Advance Auto Parts: Delving into Financials
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, Advance Auto Parts faced challenges, resulting in a decline of approximately -6.82% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Advance Auto Parts's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 0.93%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.1%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Advance Auto Parts's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.22%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Advance Auto Parts's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.67.
To track all earnings releases for Advance Auto Parts visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.