DA Davidson Forecasts Weaker Earnings for Advance Auto Parts

Key Points

• DA Davidson has lowered its FY2025 earnings per share forecast for Advance Auto Parts from $1.96 to $1.53 and maintains a "Neutral" rating with a target price of $63.00.
• Advance Auto Parts reported a quarterly EPS of $0.69, beating estimates, but has seen a 7.7% decline in revenue year-over-year.
• The company will pay a quarterly dividend of $0.25 on October 24, with an annualized yield of 1.7%.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Equities research analysts at DA Davidson reduced their FY2025 earnings per share estimates for shares of Advance Auto Parts in a research report issued on Tuesday, September 9th. DA Davidson analyst M. Baker now anticipates that the company will earn $1.53 per share for the year, down from their previous estimate of $1.96. DA Davidson currently has a "Neutral" rating and a $63.00 target price on the stock. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. DA Davidson also issued estimates for Advance Auto Parts' FY2026 earnings at $2.87 EPS.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.10. The business had revenue of $2.01 billion during the quarter, compared to analysts' expectations 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 business's quarterly revenue was down 7.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.75 EPS. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS.

Other research analysts have also recently issued reports about the company. Raymond James Financial upped their price objective on Advance Auto Parts to $49.17 and gave the stock a "hold" rating in a research report on Monday, May 26th. 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. Citigroup set a $60.00 target price on Advance Auto Parts in a research report on Thursday, August 14th. BMO Capital Markets reissued a "market perform" rating and issued a $50.00 target price (up from $40.00) on shares of Advance Auto Parts in a research report on Friday, May 23rd. Finally, The Goldman Sachs Group downgraded Advance Auto Parts from a "neutral" rating to a "sell" rating and reduced their price objective for the company from $48.00 to $46.00 in a research note on Tuesday, June 24th. One investment analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $51.78.

Advance Auto Parts Trading Down 0.6%

NYSE:AAP opened at $59.21 on Thursday. The stock has a 50-day simple moving average of $58.76 and a 200-day simple moving average of $46.17. The stock has a market cap of $3.55 billion, a P/E ratio of -9.30 and a beta of 1.06. Advance Auto Parts has a 1 year low of $28.89 and a 1 year high of $70.00. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.49 and a current ratio of 1.27.

Hedge Funds Weigh In On Advance Auto Parts

Several hedge funds have recently bought and sold shares of AAP. Osaic Holdings Inc. grew its holdings in Advance Auto Parts by 78.6% during the 2nd quarter. Osaic Holdings Inc. now owns 17,532 shares of the company's stock valued at $815,000 after buying an additional 7,718 shares during the last quarter. Rexford Capital Inc. acquired a new stake in Advance Auto Parts during the 2nd quarter valued at $172,000. Public Sector Pension Investment Board grew its holdings in Advance Auto Parts by 8.4% during the 2nd quarter. Public Sector Pension Investment Board now owns 203,949 shares of the company's stock valued at $9,482,000 after buying an additional 15,790 shares during the last quarter. FORA Capital LLC acquired a new stake in Advance Auto Parts during the 2nd quarter valued at $2,090,000. Finally, Headlands Technologies LLC acquired a new stake in Advance Auto Parts during the 2nd quarter valued at $101,000. 88.70% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, SVP Jason Hand sold 948 shares of the firm'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 completion of the transaction, the senior vice president directly owned 9,876 shares of the company's stock, valued at $479,183.52. This trade represents a 8.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.35% of the stock is owned by insiders.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, October 10th. Advance Auto Parts's dividend payout ratio (DPR) is presently -15.70%.

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.

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