Advance Auto Parts (NYSE:AAP) is gearing up to announce its quarterly earnings on Thursday, 2025-10-30. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Advance Auto Parts will report an earnings per share (EPS) of $0.75.
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 Track Record
During the last quarter, the company reported an EPS beat by $0.10, leading to a 0.02% 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:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.59 | -0.69 | -1.18 | 0.54 |
| EPS Actual | 0.69 | -0.22 | -1.18 | -0.04 |
| Price Change % | 0.00 | -1.00 | -2.00 | -9.00 |
Performance of Advance Auto Parts Shares
Shares of Advance Auto Parts were trading at $57.0 as of October 28. Over the last 52-week period, shares are up 55.76%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about 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.
Analysts have provided Advance Auto Parts with 13 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $56.04, suggesting a potential 1.68% downside.
Comparing Ratings Among Industry Peers
The below comparison of the analyst ratings and average 1-year price targets of Valvoline, Sonic Automotive and Asbury Automotive Group, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Valvoline, with an average 1-year price target of $46.0, suggesting a potential 19.3% downside.
- Analysts currently favor an Buy trajectory for Sonic Automotive, with an average 1-year price target of $85.0, suggesting a potential 49.12% upside.
- Analysts currently favor an Underperform trajectory for Asbury Automotive Group, with an average 1-year price target of $250.4, suggesting a potential 339.3% upside.
Snapshot: Peer Analysis
In the peer analysis summary, key metrics for Valvoline, Sonic Automotive and Asbury Automotive Group are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Advance Auto Parts | Neutral | -7.71% | $874M | 0.68% |
| Valvoline | Outperform | 4.18% | $177.60M | 20.10% |
| Sonic Automotive | Buy | 13.81% | $615.50M | 4.46% |
| Asbury Automotive Group | Underperform | 2.99% | $751.90M | 4.13% |
Key Takeaway:
Advance Auto Parts is positioned in the middle among its peers for revenue growth, with a negative growth rate. It ranks at the bottom for gross profit, indicating lower profitability compared to others. In terms of return on equity, it is also at the bottom, suggesting lower efficiency in generating profits relative to equity.
About Advance Auto Parts
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
Understanding the Numbers: Advance Auto Parts's Finances
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Advance Auto Parts's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -7.71% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Advance Auto Parts's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.75%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Advance Auto Parts's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.68%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.14%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.66, Advance Auto Parts adopts a prudent financial strategy, indicating a balanced approach to debt management.
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.
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