Advance Auto Parts, Inc. (NYSE:AAP) Plans $0.25 Quarterly Dividend

Key Points

• Advance Auto Parts declared a quarterly dividend of $0.25 per share (annualized $1.00), with an ex-dividend and record date of April 10 and payment on April 24, implying a yield of about 1.9%.
• The company beat expectations this quarter, reporting $0.86 EPS vs. $0.41 expected and $1.97B in revenue vs. $1.95B estimated, and set FY2026 guidance of $2.40–$3.10 EPS.
• The dividend appears covered (payout ratio 32.3%, projected 63.7% on analysts' $1.57 estimate), but analyst sentiment is mixed with a MarketBeat consensus of "Reduce" and an average price target of $52.93.

Advance Auto Parts, Inc. (NYSE:AAP - Get Free Report) declared a quarterly dividend on Tuesday, February 10th. Investors of record on Friday, April 10th will be paid a dividend of 0.25 per share on Friday, April 24th. This represents a c) annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, April 10th.

Advance Auto Parts has a dividend payout ratio of 32.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Advance Auto Parts to earn $1.57 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 63.7%.

Advance Auto Parts Trading Down 0.6%

Advance Auto Parts stock opened at $52.66 on Wednesday. The company has a current ratio of 1.75, a quick ratio of 0.87 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a 12 month low of $28.89 and a 12 month high of $70.00. The stock's 50 day simple moving average is $52.74 and its two-hundred day simple moving average is $50.59. The firm has a market cap of $3.18 billion, a PE ratio of 72.14, a P/E/G ratio of 0.69 and a beta of 1.04.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings data on Friday, February 13th. The company reported $0.86 EPS for the quarter, topping the consensus estimate of $0.41 by $0.45. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The business had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the prior year, the firm posted ($10.16) EPS. The business's quarterly revenue 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. Analysts anticipate that Advance Auto Parts will post -0.46 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Citigroup upgraded Advance Auto Parts from a "hold" rating to a "buy" rating in a research report on Wednesday, January 21st. Morgan Stanley set a $60.00 price objective on Advance Auto Parts in a research report on Tuesday, February 17th. Truist Financial upped their price objective on Advance Auto Parts from $48.00 to $57.00 and gave the stock a "hold" rating in a research report on Tuesday, February 17th. Royal Bank Of Canada upped their price objective on Advance Auto Parts from $57.00 to $63.00 and gave the stock a "sector perform" rating in a research report on Tuesday, February 17th. Finally, Wells Fargo & Company upped their price objective on Advance Auto Parts from $40.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 11th. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Advance Auto Parts has a consensus rating of "Reduce" and an average price target of $52.93.

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.

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