Advance Auto Parts (NYSE:AAP) Shares Gap Up on Strong Earnings

Advance Auto Parts, Inc. (NYSE:AAP)’s share price gapped up prior to trading 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 traded.

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

More Advance Auto Parts News

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

Analyst Upgrades and Downgrades

AAP has been the subject of several research analyst reports. Citigroup raised shares of Advance Auto Parts from a “hold” rating to a “buy” rating in a research report on Wednesday, January 21st. Evercore ISI set a $60.00 price objective on Advance Auto Parts in a report on Wednesday. Royal Bank Of Canada cut their target price on Advance Auto Parts from $60.00 to $57.00 and set a “sector perform” rating on the stock in a research report on Wednesday, February 4th. Northcoast Research raised Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price target for the company in a research report on Wednesday, January 21st. Finally, BMO Capital Markets restated a “market perform” rating and set a $55.00 price target on shares of Advance Auto Parts in a research note on Friday, October 31st. Three investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have given 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 Investors Weigh In On Advance Auto Parts

Several hedge funds have recently modified their holdings of the stock. Royal Bank of Canada boosted its holdings in Advance Auto Parts by 107.2% in the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock worth $3,119,000 after acquiring an additional 41,157 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Advance Auto Parts by 327.7% during the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after purchasing an additional 278,066 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Advance Auto Parts by 14.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock valued at $7,096,000 after purchasing an additional 23,018 shares during the period. KLP Kapitalforvaltning AS grew its holdings in Advance Auto Parts by 2.5% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 12,500 shares of the company’s stock valued at $581,000 after purchasing an additional 300 shares in the last quarter. Finally, Blue Trust Inc. increased its stake in Advance Auto Parts by 15.3% during the 2nd quarter. Blue Trust Inc. now owns 3,278 shares of the company’s stock worth $152,000 after buying an additional 436 shares during the period. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts Stock Performance

The stock has a 50-day moving average price of $45.73 and a 200-day moving average price of $52.36. The firm has a market capitalization of $3.51 billion, a PE ratio of -9.30 and a beta of 1.14. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.73 and a quick ratio of 0.88.

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.