Zacks Research Issues Pessimistic Outlook for AAP Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for Advance Auto Parts to $0.77 from $0.80, signaling a more cautious near-term earnings outlook. The firm also cut several later-quarter forecasts, pointing to softer expectations ahead.
• Advance Auto Parts beat last quarter’s expectations, reporting EPS of $0.77 versus the $0.39 consensus and revenue of $2.61 billion versus $2.05 billion expected. The company also reaffirmed FY2026 guidance of $2.40 to $3.10 EPS.
• Wall Street remains largely neutral on the stock, with an average “Hold” rating and a consensus price target of $58.66. Shares were down 2.2% in the latest trading session, even as some analysts see longer-term earnings growth potential.

Advance Auto Parts, Inc. (NYSE:AAP - Free Report) - Analysts at Zacks Research dropped their Q2 2026 EPS estimates for Advance Auto Parts in a report released on Thursday, June 4th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.77 per share for the quarter, down from their previous estimate of $0.80. The consensus estimate for Advance Auto Parts' current full-year earnings is $2.91 per share. Zacks Research also issued estimates for Advance Auto Parts' Q3 2026 earnings at $0.80 EPS, Q4 2026 earnings at $0.50 EPS, FY2026 earnings at $2.84 EPS, Q1 2027 earnings at $0.53 EPS, Q2 2027 earnings at $1.13 EPS, Q3 2027 earnings at $1.04 EPS, Q4 2027 earnings at $0.82 EPS, FY2027 earnings at $3.53 EPS and Q1 2028 earnings at $0.72 EPS.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, topping 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 business had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.05 billion. During the same period in the previous year, the company earned $0.40 earnings per share. The firm's revenue for the quarter was up 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS.

Several other research firms have also recently weighed in on AAP. Evercore set a $60.00 price target on shares of Advance Auto Parts in a report on Wednesday, February 11th. JPMorgan Chase & Co. dropped their target price on shares of Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating on the stock in a research note on Friday, May 15th. Royal Bank Of Canada boosted their target price on shares of Advance Auto Parts from $62.00 to $65.00 and gave the company a "sector perform" rating in a research note on Friday, May 22nd. TD Cowen reiterated a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 22nd. Finally, Citigroup boosted their price target on shares of Advance Auto Parts from $57.00 to $60.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. 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 stock. Based on data from MarketBeat.com, Advance Auto Parts presently has an average rating of "Hold" and a consensus price target of $58.66.

Advance Auto Parts Stock Down 2.2%

Advance Auto Parts stock opened at $55.88 on Friday. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $70.00. The stock has a market cap of $3.37 billion, a PE ratio of 77.61, a price-to-earnings-growth ratio of 0.95 and a beta of 1.05. The firm's 50-day simple moving average is $55.23 and its 200 day simple moving average is $50.99. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78.

Hedge Funds Weigh In On Advance Auto Parts

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Glenmede Trust Co. NA purchased a new position in Advance Auto Parts in the 1st quarter worth approximately $357,000. Bank of America Corp DE grew its stake in Advance Auto Parts by 4.5% in the 1st quarter. Bank of America Corp DE now owns 1,056,281 shares of the company's stock worth $55,719,000 after buying an additional 45,696 shares in the last quarter. Arkadios Wealth Advisors grew its stake in Advance Auto Parts by 3.7% in the 1st quarter. Arkadios Wealth Advisors now owns 29,002 shares of the company's stock worth $1,530,000 after buying an additional 1,035 shares in the last quarter. Amundi boosted its stake in shares of Advance Auto Parts by 37.0% in the 1st quarter. Amundi now owns 10,887 shares of the company's stock valued at $574,000 after purchasing an additional 2,943 shares in the last quarter. Finally, California State Teachers Retirement System boosted its stake in shares of Advance Auto Parts by 23.0% in the 1st quarter. California State Teachers Retirement System now owns 70,260 shares of the company's stock valued at $3,706,000 after purchasing an additional 13,145 shares in the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

Advance Auto Parts Announces Dividend

The company also recently announced 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 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts's dividend payout ratio is 138.89%.

Key Advance Auto Parts News

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate to $2.84 from $2.72, indicating slightly better near-term earnings expectations for Advance Auto Parts NYSE: AAP.
• Positive Sentiment: The company’s long-term earnings outlook still looks constructive in some forecasts, with Zacks estimating FY2027 EPS at $3.53, above the current full-year consensus of $2.91.
• Neutral Sentiment: Brokerages currently assign Advance Auto Parts an average recommendation of “Hold,” suggesting Wall Street is not strongly bullish or bearish on the shares. Advance Auto Parts, Inc. NYSE: AAP Given Average Recommendation of "Hold" by Brokerages
• Neutral Sentiment: Shares recently moved above their 200-day moving average, a technical signal that can support momentum, though it does not change the underlying earnings outlook. Advance Auto Parts NYSE: AAP Shares Cross Above 200-Day Moving Average - Here's What Happened
• Negative Sentiment: Zacks cut estimates for Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q3 2027, Q4 2027, and Q1 2028, which points to a weaker earnings outlook for Advance Auto Parts NYSE: AAP and may be contributing to recent stock weakness.

About Advance Auto Parts

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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