Zacks Research Issues Pessimistic Outlook for AAP Earnings

Advance Auto Parts, Inc. (NYSE:AAP) – Zacks Research cut their Q2 2026 earnings estimates for shares of Advance Auto Parts in a report released on Thursday, June 4th. Zacks Research analyst Team now expects that the company will earn $0.77 per share for the quarter, down from their prior estimate of $0.80. The consensus estimate for Advance Auto Parts’ current full-year earnings is $2.91 per share. Zacks Research also issued estimates for Advance Auto Parts’ Q3 2026 earnings at $0.80 EPS, Q4 2026 earnings at $0.50 EPS, FY2026 earnings at $2.84 EPS, Q1 2027 earnings at $0.53 EPS, Q2 2027 earnings at $1.13 EPS, Q3 2027 earnings at $1.04 EPS, Q4 2027 earnings at $0.82 EPS, FY2027 earnings at $3.53 EPS and Q1 2028 earnings at $0.72 EPS.

AAP has been the subject of several other research reports. Mizuho increased their price target on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research report on Tuesday, May 26th. Weiss Ratings raised shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 29th. UBS Group increased their price target on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “neutral” rating in a research report on Friday, May 22nd. BMO Capital Markets upped their price objective on shares of Advance Auto Parts from $60.00 to $65.00 and gave the stock a “market perform” rating in a report on Friday, May 22nd. Finally, Citigroup upped their price objective on shares of Advance Auto Parts from $57.00 to $60.00 and gave the stock a “neutral” rating in a report on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Advance Auto Parts has an average rating of “Hold” and an average price target of $58.66.

Advance Auto Parts Trading Down 2.2%

Shares of AAP opened at $55.88 on Friday. The stock has a market capitalization of $3.37 billion, a P/E ratio of 77.61, a PEG ratio of 0.95 and a beta of 1.05. The company has a quick ratio of 0.85, a current ratio of 1.78 and a debt-to-equity ratio of 1.54. The firm has a fifty day simple moving average of $55.23 and a two-hundred day simple moving average of $50.99. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $70.00.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings data on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The company had revenue of $2.61 billion during the quarter, compared to analysts’ expectations of $2.05 billion. During the same quarter in the prior year, the company earned $0.40 EPS. The firm’s revenue was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS.

Advance Auto Parts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a $0.25 dividend. The ex-dividend date is Friday, July 10th. This represents a $1.00 annualized dividend and a yield of 1.8%. Advance Auto Parts’s dividend payout ratio is 138.89%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Glenmede Trust Co. NA bought a new position in shares of Advance Auto Parts in the 1st quarter worth about $357,000. Bank of America Corp DE increased its stake in shares of Advance Auto Parts by 4.5% in the 1st quarter. Bank of America Corp DE now owns 1,056,281 shares of the company’s stock worth $55,719,000 after acquiring an additional 45,696 shares in the last quarter. Arkadios Wealth Advisors increased its stake in shares of Advance Auto Parts by 3.7% in the 1st quarter. Arkadios Wealth Advisors now owns 29,002 shares of the company’s stock worth $1,530,000 after acquiring an additional 1,035 shares in the last quarter. Amundi increased its stake in shares of Advance Auto Parts by 37.0% in the 1st quarter. Amundi now owns 10,887 shares of the company’s stock worth $574,000 after acquiring an additional 2,943 shares in the last quarter. Finally, California State Teachers Retirement System increased its stake in shares of Advance Auto Parts by 23.0% in the 1st quarter. California State Teachers Retirement System now owns 70,260 shares of the company’s stock worth $3,706,000 after acquiring an additional 13,145 shares in the last quarter. 88.70% of the stock is currently owned by institutional investors.

Advance Auto Parts News Roundup

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate to $2.84 from $2.72, indicating slightly better near-term earnings expectations for Advance Auto Parts (NYSE:AAP).
• Positive Sentiment: The company’s long-term earnings outlook still looks constructive in some forecasts, with Zacks estimating FY2027 EPS at $3.53, above the current full-year consensus of $2.91.
• Neutral Sentiment: Brokerages currently assign Advance Auto Parts an average recommendation of “Hold,” suggesting Wall Street is not strongly bullish or bearish on the shares. Advance Auto Parts, Inc. (NYSE:AAP) Given Average Recommendation of “Hold” by Brokerages
• Neutral Sentiment: Shares recently moved above their 200-day moving average, a technical signal that can support momentum, though it does not change the underlying earnings outlook. Advance Auto Parts (NYSE:AAP) Shares Cross Above 200-Day Moving Average – Here’s What Happened
• Negative Sentiment: Zacks cut estimates for Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q3 2027, Q4 2027, and Q1 2028, which points to a weaker earnings outlook for Advance Auto Parts (NYSE:AAP) and may be contributing to recent stock weakness.

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.