Advance Auto Parts (NYSE:AAP) Announces Earnings Results

Advance Auto Parts (NYSE:AAP) issued its earnings results on Thursday. The company reported $0.79 EPS for the quarter, beating analysts’ consensus estimates of $0.77 by $0.02, FiscalAI reports. The company had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%. Advance Auto Parts’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.92 earnings per share.

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

• Third-quarter comparable sales fell 1.2%, and adjusted diluted EPS declined to $0.79 from $0.92 a year earlier. Weak DIY demand, pressured household budgets, and consumers deferring larger repairs weighed on results.
• Sales trends improved through the quarter, turning positive in the final four weeks as DIY declines narrowed; Pro comparable sales rose in the low single digits, led by Main Street Pro. Management also cited improving customer metrics, including NPS above 80 and attachment rates in the mid-30% range.
• Advance raised its full-year free cash flow outlook to approximately $150 million, implying more than $400 million of year-over-year growth. It narrowed adjusted operating margin guidance to 4.0%–4.3%, reaffirming the midpoint and forecasting more than 150 basis points of expansion versus last year.
• The company is expanding its market hub network and pursuing assortment, supply-chain, and store-productivity initiatives, including expected transportation savings of more than 20 basis points. Management sees these efforts supporting future growth and margins, though results depend on continued execution amid cost and demand pressures.

Advance Auto Parts Price Performance

Shares of Advance Auto Parts stock traded down $2.45 on Friday, hitting $45.67. The company had a trading volume of 1,667,684 shares, compared to its average volume of 1,462,707. Advance Auto Parts has a 52 week low of $37.89 and a 52 week high of $65.20. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.75 and a quick ratio of 0.85. The company has a market cap of $2.76 billion, a PE ratio of 27.85, a PEG ratio of 0.92 and a beta of 1.02. The business has a 50-day simple moving average of $43.30 and a 200-day simple moving average of $51.73.

Advance Auto Parts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 22nd. Stockholders of record on Friday, January 8th will be issued a $0.25 dividend. The ex-dividend date is Friday, January 8th. This represents a $1.00 annualized dividend and a dividend yield of 2.2%. Advance Auto Parts’s dividend payout ratio (DPR) is 72.99%.

Key Stories Impacting Advance Auto Parts

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

• Positive Sentiment: Royal Bank of Canada raised its price target to $51 from $49 while maintaining a “sector perform” rating. The new target represented about 11.7% upside from the cited $45.67 share price. Royal Bank of Canada recommendations
• Positive Sentiment: Third-quarter adjusted earnings of $0.79 per share topped the $0.77 consensus estimate, providing a modest earnings bright spot. Advance Auto Parts Q3 earnings top estimates
• Positive Sentiment: The company declared a $0.25 dividend, offering continued income to shareholders. Advance Auto Parts declares dividend
• Negative Sentiment: Revenue was $2.01 billion, below the $2.04 billion analyst estimate and down 1.2% year over year. EPS also fell from $0.92 in the year-ago quarter, tempering the impact of the earnings beat. Advance Auto Parts Q3 results
• Negative Sentiment: Advance Auto Parts updated and narrowed its full-year 2026 outlook. The guidance revision, alongside the revenue shortfall, appears to have overshadowed the small EPS beat and contributed to a cautious investor response. Advance Auto Parts narrows 2026 outlook

Analyst Ratings Changes

AAP has been the subject of several recent analyst reports. Mizuho set a $50.00 target price on shares of Advance Auto Parts in a research report on Friday. Roth Capital set a $48.00 price objective on Advance Auto Parts in a research report on Friday, August 21st. Wells Fargo & Company reduced their price objective on Advance Auto Parts from $60.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday, August 21st. UBS Group decreased their price objective on Advance Auto Parts from $65.00 to $47.00 and set a “neutral” rating for the company in a report on Friday, August 21st. Finally, Evercore restated a “positive” rating on shares of Advance Auto Parts in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Advance Auto Parts has a consensus rating of “Hold” and a consensus target price of $47.28.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc is a specialty retailer and distributor of automotive aftermarket parts, accessories, and maintenance products. The company serves both do-it-yourself customers and professional repair shops, offering products such as replacement parts, batteries, engine and drivetrain components, filters, fluids, tools, and other automotive supplies.

The company operates through a network of stores, distribution centers, and online channels under the Advance Auto Parts and Carquest brands.