Advance Auto Parts (NYSE:AAP) Posts Earnings Results, Beats Estimates By $0.02 EPS

Advance Auto Parts (NYSE:AAP) posted its quarterly earnings data on Thursday. The company reported $0.79 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.02, FiscalAI reports. The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The firm’s revenue was down 1.2% compared to the same quarter last year. During the same quarter last 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 Trading Down 5.1%

AAP stock traded down $2.45 during midday trading on Friday, reaching $45.67. 1,667,684 shares of the company traded hands, compared to its average volume of 1,462,707. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of 13.39, a P/E/G ratio of 0.92 and a beta of 1.02. The business has a 50 day moving average of $43.30 and a 200-day moving average of $51.73. 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 quick ratio of 0.85 and a current ratio of 1.75.

Advance Auto Parts Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 22nd. Stockholders of record on Friday, January 8th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Friday, January 8th. Advance Auto Parts’s dividend payout ratio is currently 72.99%.

Key Advance Auto Parts News

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

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Barclays reduced their target price on shares of Advance Auto Parts from $59.00 to $50.00 and set an “equal weight” rating for the company in a report on Friday, August 21st. Morgan Stanley cut their price objective on shares of Advance Auto Parts from $65.00 to $52.00 and set an “equal weight” rating for the company in a research report on Friday, August 21st. Truist Financial set a $43.00 price objective on Advance Auto Parts and gave the stock a “hold” rating in a research note on Thursday, August 20th. Roth Capital set a $48.00 target price on Advance Auto Parts in a report on Friday, August 21st. Finally, Citigroup raised their target price on Advance Auto Parts from $45.00 to $48.00 and gave the stock a “neutral” rating in a report on Friday, October 23rd. Three equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Advance Auto Parts currently has an average 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.