Zacks Research Expects Lower Earnings for Advance Auto Parts

Key Points

• Zacks Research has lowered its Q2 2026 earnings per share (EPS) estimate for Advance Auto Parts ($0.73 down from $0.77), reflecting a negative outlook for the company.
• The consensus estimate for the company's current full-year earnings stands at (-0.46) EPS, with an average stock rating of "Hold" and a target price of $48.53.
• Advance Auto Parts recently declared a quarterly dividend of $0.25 per share, indicating a 1.70% yield, despite experiencing a significant revenue decline of 24.2% year-over-year.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Zacks Research lowered their Q2 2026 earnings per share estimates for shares of Advance Auto Parts in a research report issued on Wednesday, July 23rd. Zacks Research analyst R. Department now forecasts that the company will earn $0.73 per share for the quarter, down from their prior estimate of $0.77. The consensus estimate for Advance Auto Parts' current full-year earnings is ($0.46) per share.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 22nd. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.81) by $0.59. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.51 billion. Advance Auto Parts had a negative return on equity of 1.76% and a negative net margin of 3.74%. The company's revenue for the quarter was down 24.2% on a year-over-year basis. During the same quarter last year, the business posted $0.67 EPS.

AAP has been the topic of a number of other research reports. Evercore ISI raised their target price on Advance Auto Parts from $52.00 to $56.00 and gave the company an "in-line" rating in a report on Friday, July 25th. Roth Capital set a $50.00 target price on Advance Auto Parts and gave the stock a "neutral" rating in a research note on Wednesday, May 28th. Raymond James Financial boosted their target price on shares of Advance Auto Parts to $49.17 and gave the company a "hold" rating in a report on Monday, May 26th. Redburn Partners raised shares of Advance Auto Parts from a "sell" rating to a "neutral" rating and set a $45.00 price target on the stock in a report on Tuesday, June 3rd. Finally, The Goldman Sachs Group lowered shares of Advance Auto Parts from a "neutral" rating to a "sell" rating and cut their target price for the stock from $48.00 to $46.00 in a research report on Tuesday, June 24th. Three equities research analysts have rated the stock with a sell rating, nineteen have given a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, Advance Auto Parts presently has a consensus rating of "Hold" and a consensus target price of $48.53.

Advance Auto Parts Stock Performance

Shares of NYSE AAP traded down $1.69 during trading hours on Monday, reaching $54.15. 315,894 shares of the stock were exchanged, compared to its average volume of 2,704,787. The firm has a market capitalization of $3.24 billion, a price-to-earnings ratio of -9.28 and a beta of 1.04. Advance Auto Parts has a 52 week low of $28.89 and a 52 week 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's fifty day simple moving average is $52.96 and its 200 day simple moving average is $43.71.

Institutional Trading of Advance Auto Parts

Hedge funds have recently added to or reduced their stakes in the company. REAP Financial Group LLC acquired a new position in Advance Auto Parts during the second quarter worth $26,000. Hexagon Capital Partners LLC raised its position in shares of Advance Auto Parts by 189.0% in the first 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. Parallel Advisors LLC raised its position in shares of Advance Auto Parts by 355.8% in the second quarter. Parallel Advisors LLC now owns 939 shares of the company's stock valued at $44,000 after buying an additional 733 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Advance Auto Parts in the fourth quarter valued at about $46,000. Finally, Financial Management Professionals Inc. acquired a new stake in shares of Advance Auto Parts in the first quarter valued at about $49,000. 88.75% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Advance Auto Parts

In other Advance Auto Parts news, SVP Jason Hand sold 948 shares of the company's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the transaction, the senior vice president owned 9,876 shares in the company, valued at approximately $479,183.52. This represents a 8.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.35% of the company's stock.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were paid a dividend of $0.25 per share. The ex-dividend date was Friday, July 11th. This represents a $1.00 annualized dividend and a dividend yield of 1.85%. Advance Auto Parts's dividend payout ratio (DPR) is presently -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.