Zacks Research Has Positive Estimate for AAP Q1 Earnings

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Advance Auto Parts to $0.77 from $0.53, reflecting a more optimistic view ahead of the company’s next quarterly results.
• Advance Auto Parts recently beat expectations in its latest earnings report, posting $0.77 EPS versus a $0.39 consensus and revenue of $2.61 billion versus $2.05 billion expected.
• Wall Street remains cautious overall despite some higher price targets, with the stock carrying a consensus “Hold” rating and a consensus target price of $58.66.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Stock analysts at Zacks Research increased their Q1 2027 earnings per share estimates for Advance Auto Parts in a research report issued to clients and investors on Thursday, July 2nd. Zacks Research analyst Team now expects that the company will post earnings per share of $0.77 for the quarter, up from their prior forecast of $0.53. The consensus estimate for Advance Auto Parts' current full-year earnings is $2.94 per share. Zacks Research also issued estimates for Advance Auto Parts' Q3 2027 earnings at $1.10 EPS, Q4 2027 earnings at $0.88 EPS, FY2027 earnings at $3.93 EPS and Q1 2028 earnings at $0.84 EPS.

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

Several other brokerages have also recently commented on AAP. Wells Fargo & Company upped their target price on shares of Advance Auto Parts from $50.00 to $60.00 and gave the company an "equal weight" rating in a research report on Friday, May 22nd. Royal Bank Of Canada lifted their price objective on Advance Auto Parts from $62.00 to $65.00 and gave the stock a "sector perform" rating in a research note on Friday, May 22nd. Mizuho upped their price objective on Advance Auto Parts from $54.00 to $58.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft raised Advance Auto Parts to a "buy" rating in a research note on Friday, May 22nd. Finally, Citigroup boosted their target price on Advance Auto Parts from $57.00 to $60.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $58.66.

Advance Auto Parts Trading Up 0.2%

Shares of NYSE AAP opened at $56.45 on Tuesday. The company's 50 day simple moving average is $57.35 and its 200 day simple moving average is $52.48. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $70.00. The firm has a market capitalization of $3.40 billion, a P/E ratio of 78.77, a P/E/G ratio of 1.01 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AAP. Glenmede Trust Co. NA acquired a new stake in shares of Advance Auto Parts during the first quarter worth about $357,000. Bank of America Corp DE boosted its holdings in shares of Advance Auto Parts by 4.5% in the first quarter. Bank of America Corp DE now owns 1,056,281 shares of the company's stock valued at $55,719,000 after buying an additional 45,696 shares during the period. Arkadios Wealth Advisors boosted its holdings in shares of Advance Auto Parts by 3.7% in the first quarter. Arkadios Wealth Advisors now owns 29,002 shares of the company's stock valued at $1,530,000 after buying an additional 1,035 shares during the period. Amundi increased its position in shares of Advance Auto Parts by 37.0% during the first quarter. Amundi now owns 10,887 shares of the company's stock worth $574,000 after acquiring an additional 2,943 shares in the last quarter. Finally, California State Teachers Retirement System raised its holdings in shares of Advance Auto Parts by 23.0% during the first quarter. California State Teachers Retirement System now owns 70,260 shares of the company's stock worth $3,706,000 after acquiring an additional 13,145 shares during the period. 88.70% of the stock is currently owned by institutional investors.

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 given a $0.25 dividend. The ex-dividend date is Friday, July 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.8%. Advance Auto Parts's dividend payout ratio is currently 138.89%.

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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