Research Analysts Offer Predictions for AAP FY2028 Earnings

Key Points

• Zacks Research raised its FY2028 EPS estimate for Advance Auto Parts to $3.90 from $3.51, above the current consensus estimate of $2.95 per share.
• The company recently beat quarterly expectations, reporting EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion versus $2.05 billion expected.
• Analyst sentiment remains cautious overall, with the stock carrying a consensus “Hold” rating and an average price target of $58.66.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Equities research analysts at Zacks Research upped their FY2028 earnings per share estimates for shares of Advance Auto Parts in a research report issued on Thursday, June 4th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $3.90 for the year, up from their prior estimate of $3.51. The consensus estimate for Advance Auto Parts' current full-year earnings is $2.95 per share.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.38. The firm had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.05 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The firm's quarterly revenue was up 1.2% on a year-over-year basis. During the same period last year, the company posted $0.40 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS.

A number of other equities research analysts also recently commented on AAP. Roth Mkm reiterated a "neutral" rating and set a $57.00 price objective on shares of Advance Auto Parts in a research report on Thursday, February 19th. DA Davidson set a $58.00 price objective on Advance Auto Parts in a research report on Tuesday, February 17th. Citigroup increased their price objective on Advance Auto Parts from $57.00 to $60.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. JPMorgan Chase & Co. cut their price objective on Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating for the company in a research report on Friday, May 15th. Finally, Mizuho increased their price objective on Advance Auto Parts from $54.00 to $58.00 and gave the company a "neutral" rating in a research report on Tuesday, May 26th. Two investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Advance Auto Parts presently has a consensus rating of "Hold" and a consensus target price of $58.66.

Advance Auto Parts Stock Performance

Shares of NYSE AAP opened at $56.81 on Monday. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $70.00. The stock has a fifty day moving average price of $55.31 and a two-hundred day moving average price of $51.05. The firm has a market cap of $3.43 billion, a P/E ratio of 78.91, a PEG ratio of 0.93 and a beta of 1.05. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, July 10th. Advance Auto Parts's dividend payout ratio (DPR) is currently 138.89%.

Institutional Trading of Advance Auto Parts

Several hedge funds and other institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD raised its holdings in shares of Advance Auto Parts by 18.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company's stock worth $293,751,000 after acquiring an additional 1,190,094 shares in the last quarter. Pzena Investment Management LLC raised its holdings in shares of Advance Auto Parts by 8.2% during the first quarter. Pzena Investment Management LLC now owns 4,301,089 shares of the company's stock worth $226,882,000 after acquiring an additional 327,596 shares in the last quarter. Federated Hermes Inc. raised its holdings in shares of Advance Auto Parts by 4.4% during the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company's stock worth $110,499,000 after acquiring an additional 117,648 shares in the last quarter. State Street Corp raised its holdings in shares of Advance Auto Parts by 3.9% during the fourth quarter. State Street Corp now owns 2,499,981 shares of the company's stock worth $98,249,000 after acquiring an additional 92,861 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Advance Auto Parts by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock worth $112,243,000 after acquiring an additional 282,591 shares in the last quarter. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Key Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Advance Auto Parts crossed above its 200-day moving average, a technical signal that can attract momentum-focused buyers. Advance Auto Parts NYSE: AAP Shares Cross Above 200-Day Moving Average - Here's What Happened
• Positive Sentiment: Zacks highlighted Advance Auto Parts as a top long-term value stock, which may support investor confidence in the turnaround and valuation case. Why Advance Auto Parts (AAP) is a Top Value Stock for the Long-Term
• Neutral Sentiment: Brokerages currently rate Advance Auto Parts at an average recommendation of “Hold,” suggesting analysts are not strongly bearish but also not broadly bullish. Advance Auto Parts, Inc. NYSE: AAP Given Average Recommendation of "Hold" by Brokerages
• Negative Sentiment: Zacks Research trimmed several forward EPS estimates, including Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q3 2027, Q4 2027, Q1 2028, and FY2027, which could pressure sentiment if investors view the revisions as a sign of slower profit growth ahead.
• Positive Sentiment: Zacks did raise its FY2026 EPS estimate, which partially offsets the weaker near-term and longer-dated revisions.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

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