Advance Auto Parts (NYSE:AAP) is preparing to release its quarterly earnings on Thursday, 2025-05-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Advance Auto Parts to report an earnings per share (EPS) of $-0.62.

Anticipation surrounds Advance Auto Parts's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

During the last quarter, the company reported an EPS missed by $0.00, leading to a 1.96% drop in the share price on the subsequent day.

Here's a look at Advance Auto Parts's past performance and the resulting price change:

Performance of Advance Auto Parts Shares

Shares of Advance Auto Parts were trading at $34.16 as of May 20. Over the last 52-week period, shares are down 53.4%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on Advance Auto Parts

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Advance Auto Parts.

The consensus rating for Advance Auto Parts is Neutral, derived from 8 analyst ratings. An average one-year price target of $41.25 implies a potential 20.76% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Sonic Automotive and Camping World Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Sonic Automotive, with an average 1-year price target of $74.0, suggesting a potential 116.63% upside.
• Analysts currently favor an Outperform trajectory for Camping World Holdings, with an average 1-year price target of $18.43, suggesting a potential 46.05% downside.

Snapshot: Peer Analysis

The peer analysis summary presents essential metrics for Sonic Automotive and Camping World Holdings, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

In terms of consensus rating, Advance Auto Parts is rated lower than one peer and higher than another. For revenue growth, it is at the bottom compared to its peers. Regarding gross profit, it is also at the bottom among the group. Lastly, for return on equity, Advance Auto Parts is positioned at the bottom compared to the other companies.

All You Need to Know About Advance Auto Parts

Breaking Down Advance Auto Parts's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Advance Auto Parts's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -0.91% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Advance Auto Parts's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -20.78%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Advance Auto Parts's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -17.4%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -3.57%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average. With a ratio of 1.7, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Advance Auto Parts visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.