Zacks Research Has Pessimistic Outlook of AAP Q3 Earnings

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Stock analysts at Zacks Research reduced their Q3 2025 earnings per share estimates for Advance Auto Parts in a report issued on Thursday, June 5th. Zacks Research analyst R. Department now expects that the company will post earnings of $0.86 per share for the quarter, down from their prior estimate of $0.99. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share. Zacks Research also issued estimates for Advance Auto Parts' FY2025 earnings at $1.69 EPS.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its quarterly earnings data on Thursday, May 22nd. The company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.59. The company had revenue of $2.58 billion during the quarter, compared to analysts' expectations of $2.51 billion. Advance Auto Parts had a return on equity of 1.82% and a net margin of 0.41%. Advance Auto Parts's revenue for the quarter was down 24.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.67 earnings per share.

Several other research analysts have also recently commented on AAP. Wedbush reissued an "outperform" rating and set a $55.00 price target on shares of Advance Auto Parts in a research report on Monday, March 3rd. Redburn Partners raised Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 price target for the company in a research report on Tuesday, June 3rd. Royal Bank of Canada reduced their price target on Advance Auto Parts from $50.00 to $44.00 and set a "sector perform" rating for the company in a research report on Thursday, February 27th. Wells Fargo & Company set a $35.00 price target on Advance Auto Parts and gave the company an "equal weight" rating in a research report on Monday, May 19th. Finally, 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 report on Friday, May 23rd. One equities research analyst has rated the stock with a sell rating, twenty have assigned a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $46.01.

Advance Auto Parts Stock Up 0.3%

AAP stock opened at $52.47 on Monday. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. The stock has a market capitalization of $3.14 billion, a P/E ratio of 71.88, a P/E/G ratio of 1.98 and a beta of 1.06. The business has a 50-day moving average of $37.07 and a 200-day moving average of $41.17. Advance Auto Parts has a fifty-two week low of $28.89 and a fifty-two week high of $67.03.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. CIBC Asset Management Inc increased its stake in Advance Auto Parts by 3.9% in the fourth quarter. CIBC Asset Management Inc now owns 5,865 shares of the company's stock valued at $277,000 after acquiring an additional 221 shares during the last quarter. Yousif Capital Management LLC grew its stake in shares of Advance Auto Parts by 1.1% during the fourth quarter. Yousif Capital Management LLC now owns 26,258 shares of the company's stock valued at $1,242,000 after buying an additional 281 shares during the last quarter. Central Pacific Bank Trust Division grew its stake in shares of Advance Auto Parts by 10.0% during the first quarter. Central Pacific Bank Trust Division now owns 3,300 shares of the company's stock valued at $129,000 after buying an additional 300 shares during the last quarter. Ingalls & Snyder LLC grew its stake in shares of Advance Auto Parts by 5.0% during the fourth quarter. Ingalls & Snyder LLC now owns 6,680 shares of the company's stock valued at $316,000 after buying an additional 317 shares during the last quarter. Finally, Sovran Advisors LLC grew its stake in shares of Advance Auto Parts by 4.3% during the first quarter. Sovran Advisors LLC now owns 7,822 shares of the company's stock valued at $307,000 after buying an additional 322 shares during the last quarter. Institutional investors own 88.75% of the company's stock.

Insider Activity at Advance Auto Parts

In related news, CEO Shane M. Okelly bought 1,500 shares of the company's stock in a transaction on Tuesday, March 11th. The shares were purchased at an average price of $36.79 per share, for a total transaction of $55,185.00. Following the completion of the transaction, the chief executive officer now directly owns 183,121 shares in the company, valued at approximately $6,737,021.59. The trade was a 0.83% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.35% of the stock is owned by company insiders.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be paid a $0.25 dividend. The ex-dividend date is Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 1.91%. Advance Auto Parts's payout ratio is -17.04%.

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.

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