Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Advance Auto Parts missed analysts’ revenue expectations by 19.5% last quarter, reporting revenues of $2.15 billion, down 3.2% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Advance Auto Parts a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Advance Auto Parts’s revenue to decline 3.7% year on year to $1.94 billion, improving from the 18.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Advance Auto Parts’s peers in the auto parts retailer segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Genuine Parts delivered year-on-year revenue growth of 3.3%, beating analysts’ expectations by 1%, and O'Reilly reported revenues up 6.9%, topping estimates by 1.2%. Genuine Parts traded down 2.3% following the results while O'Reilly was also down 1.2%.
Read our full analysis of Genuine Parts’s results here and O'Reilly’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the auto parts retailer stocks have shown solid performance, the group has generally underpeformed, with share prices down 8% on average over the last month. Advance Auto Parts is down 13.4% during the same time and is heading into earnings with an average analyst price target of $44.48 (compared to the current share price of $42.60).
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