Advance Auto Parts (NYSE:AAP) Updates FY 2025 Earnings Guidance

Key Points

• Advance Auto Parts has updated its FY 2025 earnings guidance, projecting EPS between 1.200 and 2.20, which is below the consensus estimate of 1.820.
• The company also expects revenue to be between $8.4 billion and $8.6 billion, slightly lower than the consensus of $8.5 billion.
• Advance Auto Parts has declared a quarterly dividend of $0.25 per share, reflecting an annualized dividend yield of 1.6%.

Advance Auto Parts (NYSE:AAP - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.200-2.20 for the period, compared to the consensus estimate of 1.820. The company issued revenue guidance of $8.4 billion-$8.6 billion, compared to the consensus revenue estimate of $8.5 billion.

Analyst Ratings Changes

Several brokerages have issued reports on AAP. Wells Fargo & Company upped their target price on Advance Auto Parts from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Friday. Truist Financial upped their target price on Advance Auto Parts from $51.00 to $53.00 and gave the stock a "hold" rating in a research note on Friday. Cowen reaffirmed a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 23rd. Roth Capital set a $50.00 target price on Advance Auto Parts and gave the stock a "neutral" rating in a research note on Wednesday, May 28th. Finally, Mizuho increased their price objective on Advance Auto Parts from $38.00 to $44.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Two investment analysts have rated the stock with a sell rating, nineteen have given a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $51.01.

Advance Auto Parts Trading Down 0.3%

AAP stock traded down $0.16 on Monday, reaching $56.68. The company's stock had a trading volume of 1,726,174 shares, compared to its average volume of 2,699,011. The business has a fifty day simple moving average of $55.15 and a two-hundred day simple moving average of $44.62. Advance Auto Parts has a 12-month low of $28.89 and a 12-month high of $70.00. The firm has a market cap of $3.40 billion, a PE ratio of -8.90 and a beta of 1.05. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.59 by $0.10. The business had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.97 billion. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%. The firm's quarterly revenue was down 7.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.75 earnings per share. As a group, research analysts forecast that Advance Auto Parts will post -0.46 EPS for the current year.

Advance Auto Parts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Friday, October 10th will be issued a dividend of $0.25 per share. The ex-dividend date is Friday, October 10th. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. Advance Auto Parts's dividend payout ratio (DPR) is presently -15.70%.

Insider Buying and Selling at Advance Auto Parts

In other news, SVP Jason Hand sold 948 shares of the firm's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $48.52, for a total transaction of $45,996.96. Following the completion of the transaction, the senior vice president directly owned 9,876 shares in the company, valued at $479,183.52. This trade represents a 8.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.67% of the stock is owned by insiders.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of the stock. State Street Corp boosted its position in shares of Advance Auto Parts by 13.5% during the second quarter. State Street Corp now owns 2,406,039 shares of the company's stock valued at $111,857,000 after buying an additional 286,148 shares during the last quarter. Goldman Sachs Group Inc. boosted 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 valued at $14,230,000 after buying an additional 278,066 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Advance Auto Parts by 6.5% during the second quarter. Bank of America Corp DE now owns 947,754 shares of the company's stock valued at $44,061,000 after buying an additional 57,900 shares during the last quarter. FORA Capital LLC purchased a new stake in shares of Advance Auto Parts during the second quarter valued at $2,090,000. Finally, Royal Bank of Canada boosted its position in shares of Advance Auto Parts by 107.2% during the first quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock valued at $3,119,000 after buying an additional 41,157 shares during the last quarter. 88.75% of the stock is currently owned by institutional investors.

About Advance Auto Parts

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.