Advance Auto Parts (NYSE:AAP) Issues Earnings Results, Beats Expectations By $0.22 EPS

Advance Auto Parts (NYSE:AAP) released its quarterly earnings data on Thursday. The company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.81 by $0.22, FiscalAI reports. The business had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. Advance Auto Parts updated its FY 2026 guidance to 2.600-3.300 EPS.

Advance Auto Parts Price Performance

Shares of Advance Auto Parts stock opened at $56.35 on Thursday. Advance Auto Parts has a one year low of $37.89 and a one year high of $65.21. The stock has a market capitalization of $3.40 billion, a P/E ratio of 78.26, a price-to-earnings-growth ratio of 0.94 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. The business’s 50 day simple moving average is $57.30 and its two-hundred day simple moving average is $55.47.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently made changes to their positions in AAP. Caitong International Asset Management Co. Ltd purchased a new position in shares of Advance Auto Parts in the third quarter worth approximately $31,000. Smartleaf Asset Management LLC increased its holdings in Advance Auto Parts by 290.3% during the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock valued at $43,000 after buying an additional 688 shares during the last quarter. LGT Financial Advisors LLC bought a new position in Advance Auto Parts in the third quarter worth approximately $123,000. Headlands Technologies LLC purchased a new position in shares of Advance Auto Parts during the 2nd quarter worth $101,000. Finally, Advisory Services Network LLC purchased a new position in shares of Advance Auto Parts during the 3rd quarter worth $133,000. Institutional investors own 88.70% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on AAP. Mizuho upped their price target on shares of Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research note on Tuesday, May 26th. Evercore set a $65.00 price target on shares of Advance Auto Parts in a report on Tuesday, August 4th. 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 report on Friday, May 15th. Wells Fargo & Company lifted 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. Finally, Royal Bank Of Canada boosted their price target on shares of Advance Auto Parts from $65.00 to $67.00 and gave the stock a “sector perform” rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $58.91.

Key Advance Auto Parts News

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

• Positive Sentiment: Second-quarter earnings were stronger than expected, with diluted EPS of $0.90 versus $0.25 a year earlier; another reported EPS measure was $1.03, above the $0.81 consensus estimate. Advance Auto Parts Reports $55 Million Second-Quarter Profit as Sales Hold at $2 Billion
• Positive Sentiment: Profitability improved materially: operating income rose to $101 million, or 5.1% of sales, from $22 million, or 1.1%, a year earlier, while gross margin expanded to 46.2% from 43.5%. The company also reduced net leverage to 2.1x from 2.4x and repurchased $30 million of debt principal. Advance Auto Parts Reports Second Quarter 2026 Results
• Neutral Sentiment: Advance Auto Parts reaffirmed its full-year 2026 sales guidance of $8.485 billion to $8.575 billion, offering some stability despite the weaker quarterly sales trend. Advance Auto Parts Reports $55 Million Second-Quarter Profit as Sales Hold at $2 Billion
• Negative Sentiment: Comparable-store sales fell 0.5% in the quarter, a surprise decline that investors viewed as evidence that consumers are cutting back on discretionary automotive purchases. Advance Auto Parts Stock Sinks After Earnings as Same-Store Sales Decline
• Negative Sentiment: Revenue was approximately $2.0 billion, below analysts’ $2.04 billion estimate. With a net margin of only 0.51%, the sales shortfall and continued pressure on demand remain important risks despite the earnings beat. Advance Auto Parts Earnings Results

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.