Advance Auto Parts (NYSE:AAP) Releases Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Advance Auto Parts reported earnings of $0.69 per share for the quarter, exceeding analysts' estimates of $0.59, despite a year-over-year revenue decline of 7.7% to $2.01 billion.
• The company's updated FY 2025 guidance suggests an EPS target range of $1.200-2.20, while it also declared a quarterly dividend of $0.25 per share, yielding 1.8% annually.
• Analyst sentiment is mixed, with some upgrading the stock to "neutral" and others downgrading it to "sell," reflecting varying opinions on its future performance as it maintains an average rating of "Hold."

Advance Auto Parts (NYSE:AAP - Get Free Report) issued its earnings results on Thursday. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.59 by $0.10, Zacks reports. The business had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $1.97 billion. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The company's quarterly revenue was down 7.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.75 EPS. Advance Auto Parts updated its FY 2025 guidance to 1.200-2.20 EPS.

Advance Auto Parts Price Performance

NYSE AAP traded down $4.92 during trading on Thursday, reaching $56.90. 7,324,861 shares of the company traded hands, compared to its average volume of 2,368,966. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27. The stock's 50 day moving average price is $55.06 and its two-hundred day moving average price is $44.64. The company has a market cap of $3.41 billion, a price-to-earnings ratio of -9.69 and a beta of 1.05. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $70.00.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 10th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. Advance Auto Parts's payout ratio is -17.04%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on AAP shares. Redburn Partners raised Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 target price for the company in a research report on Tuesday, June 3rd. UBS Group set a $65.00 target price on Advance Auto Parts and gave the stock a "neutral" rating in a research report on Tuesday. The Goldman Sachs Group cut Advance Auto Parts from a "neutral" rating to a "sell" rating and decreased their target price for the stock from $48.00 to $46.00 in a research report on Tuesday, June 24th. Raymond James Financial raised their target price on Advance Auto Parts to $49.17 and gave the stock a "hold" rating in a research report on Monday, May 26th. Finally, Wells Fargo & Company reaffirmed an "equal weight" rating on shares of Advance Auto Parts in a research report on Thursday. Three research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat, Advance Auto Parts has an average rating of "Hold" and a consensus price target of $49.72.

Insider Activity at Advance Auto Parts

In other news, SVP Jason Hand sold 948 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $48.52, for a total value of $45,996.96. Following the transaction, the senior vice president directly owned 9,876 shares of the company's stock, valued at $479,183.52. The trade was a 8.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.35% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Hsbc Holdings PLC lifted its holdings in Advance Auto Parts by 3.1% during the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock worth $293,000 after buying an additional 191 shares in the last quarter. California State Teachers Retirement System raised its position in shares of Advance Auto Parts by 1.1% during the 2nd quarter. California State Teachers Retirement System now owns 55,187 shares of the company's stock valued at $2,566,000 after acquiring an additional 604 shares during the last quarter. Baird Financial Group Inc. raised its position in shares of Advance Auto Parts by 2.7% during the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock valued at $2,640,000 after acquiring an additional 1,515 shares during the last quarter. California Public Employees Retirement System raised its position in shares of Advance Auto Parts by 6.8% during the 2nd quarter. California Public Employees Retirement System now owns 74,025 shares of the company's stock valued at $3,441,000 after acquiring an additional 4,732 shares during the last quarter. Finally, Cerity Partners LLC bought a new stake in shares of Advance Auto Parts during the 2nd quarter valued at $338,000. Institutional investors and hedge funds own 88.75% of the company's stock.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.

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