DA Davidson Lowers Earnings Estimates 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 lowered their FY2025 earnings per share estimates for shares of Advance Auto Parts in a research note issued to investors on Tuesday, September 9th. DA Davidson analyst M. Baker now expects that the company will post earnings per share of $1.53 for the year, down from their prior estimate of $1.96. DA Davidson has a "Neutral" rating and a $63.00 price objective 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.

Several other equities analysts have also weighed in on the company. Roth Capital set a $50.00 price objective on Advance Auto Parts and gave the company a "neutral" rating in a research note on Wednesday, May 28th. Bank of America lifted their price objective on Advance Auto Parts from $33.00 to $39.00 and gave the company an "underperform" rating in a research note on Friday, May 23rd. Morgan Stanley lifted their price objective on Advance Auto Parts from $55.00 to $60.00 and gave the company an "equal weight" rating in a research note on Friday. BMO Capital Markets reaffirmed a "market perform" rating and issued a $50.00 price objective (up from $40.00) on shares of Advance Auto Parts in a research note on Friday, May 23rd. Finally, Redburn Partners raised Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 price target on the stock in a research report on Tuesday, June 3rd. One analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Advance Auto Parts has a consensus rating of "Reduce" and a consensus target price of $52.03.

Advance Auto Parts Trading Down 0.9%

Shares of NYSE AAP traded down $0.55 during midday trading on Thursday, hitting $63.62. The stock had a trading volume of 808,776 shares, compared to its average volume of 2,546,874. The company has a market capitalization of $3.82 billion, a price-to-earnings ratio of -9.99 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 quick ratio of 0.49, a current ratio of 1.27 and a debt-to-equity ratio of 0.68. The company has a fifty day moving average price of $59.38 and a 200 day moving average price of $46.73.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results 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. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.The firm had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.97 billion. During the same period last year, the company earned $0.75 EPS. The firm's quarterly revenue was down 7.7% on a year-over-year basis. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS.

Advance Auto Parts Dividend Announcement

The company 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 $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, October 10th. Advance Auto Parts's payout ratio is -15.70%.

Insider Buying and Selling 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 completion of the sale, the senior vice president directly owned 9,876 shares in the company, valued at approximately $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 can be accessed through this hyperlink. Company insiders own 0.67% of the company's stock.

Institutional Investors Weigh In On Advance Auto Parts

A number of institutional investors have recently made changes to their positions in the company. Osaic Holdings Inc. increased its holdings in shares of Advance Auto Parts by 78.6% in the 2nd quarter. Osaic Holdings Inc. now owns 17,532 shares of the company's stock valued at $815,000 after acquiring an additional 7,718 shares during the last quarter. Rexford Capital Inc. bought a new position in Advance Auto Parts during the 2nd quarter worth $172,000. Public Sector Pension Investment Board grew its stake 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 worth $9,482,000 after buying an additional 15,790 shares during the last quarter. FORA Capital LLC bought a new position in Advance Auto Parts during the 2nd quarter worth $2,090,000. Finally, Headlands Technologies LLC bought a new position in Advance Auto Parts during the 2nd quarter worth $101,000. 88.70% of the stock is currently owned by institutional investors.

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.