Roth Capital Predicts Lower Earnings for Advance Auto Parts

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Investment analysts at Roth Capital decreased their Q3 2026 earnings estimates for Advance Auto Parts in a research note issued to investors on Friday, August 15th. Roth Capital analyst S. Stember now forecasts that the company will earn $0.91 per share for the quarter, down from their previous forecast of $1.01. Roth Capital has a "Neutral" rating and a $50.00 price objective on the stock. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. Roth Capital also issued estimates for Advance Auto Parts' Q4 2026 earnings at $0.88 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, beating the consensus estimate of $0.59 by $0.10. Advance Auto Parts had a negative net margin of 4.37% and a negative return on equity of 1.97%. The company had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter in the prior year, the firm posted $0.75 earnings per share. Advance Auto Parts's revenue for the quarter 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.

Other equities analysts also recently issued research reports about the stock. Wells Fargo & Company upped their price objective on shares of Advance Auto Parts from $45.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Friday, August 15th. Redburn Partners upgraded shares of Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 target price on the stock in a research report on Tuesday, June 3rd. Raymond James Financial raised their price target on Advance Auto Parts to $49.17 and gave the company a "hold" rating in a research report on Monday, May 26th. Morgan Stanley raised their price target on Advance Auto Parts from $48.00 to $55.00 and gave the company an "equal weight" rating in a research report on Friday, August 15th. Finally, The Goldman Sachs Group cut Advance Auto Parts from a "neutral" rating to a "sell" rating and dropped their price target for the company from $48.00 to $46.00 in a research report on Tuesday, June 24th. One analyst has rated the stock with a Buy rating, eighteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Advance Auto Parts presently has a consensus rating of "Reduce" and an average target price of $51.01.

Advance Auto Parts Stock Performance

Advance Auto Parts stock traded up $0.2660 during midday trading on Monday, hitting $56.5860. 1,249,402 shares of the company's stock were exchanged, compared to its average volume of 2,687,049. Advance Auto Parts has a 12-month low of $28.89 and a 12-month 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. The stock has a market cap of $3.39 billion, a price-to-earnings ratio of -8.88 and a beta of 1.05. The firm's 50 day simple moving average is $55.30 and its 200 day simple moving average is $44.76.

Institutional Investors Weigh In On Advance Auto Parts

A number of institutional investors have recently added to or reduced their stakes in AAP. REAP Financial Group LLC purchased a new position in Advance Auto Parts in the 2nd quarter valued at about $26,000. Hexagon Capital Partners LLC boosted its position in Advance Auto Parts by 189.0% in the 1st quarter. Hexagon Capital Partners LLC now owns 711 shares of the company's stock valued at $28,000 after buying an additional 465 shares during the last quarter. Smartleaf Asset Management LLC boosted its position in Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock valued at $43,000 after buying an additional 688 shares during the last quarter. Parallel Advisors LLC increased its position in shares of Advance Auto Parts by 355.8% in the 2nd quarter. Parallel Advisors LLC now owns 939 shares of the company's stock worth $44,000 after purchasing an additional 733 shares during the last quarter. Finally, Advisory Services Network LLC bought a new stake in shares of Advance Auto Parts in the 4th quarter worth about $46,000. Hedge funds and other institutional investors own 88.75% of the company's stock.

Insiders Place Their Bets

In related news, SVP Jason Hand sold 948 shares of the stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $48.52, for a total transaction of $45,996.96. Following the transaction, the senior vice president directly owned 9,876 shares in the company, valued at approximately $479,183.52. This represents a 8.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.67% of the company's stock.

Advance Auto Parts Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be given a dividend of $0.25 per share. The ex-dividend date is Friday, October 10th. This represents a $1.00 annualized dividend and a yield of 1.8%. Advance Auto Parts's dividend payout ratio is -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.