Advance Auto Parts (NYSE:AAP) Issues FY 2026 Earnings Guidance

Advance Auto Parts (NYSE:AAP) issued an update on its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.600-3.300 for the period, compared to the consensus estimate of 2.940. The company issued revenue guidance of $8.5 billion-$8.6 billion, compared to the consensus revenue estimate of $8.6 billion.

Analysts Set New Price Targets

AAP has been the topic of several recent analyst reports. Royal Bank Of Canada lifted their target price on shares of Advance Auto Parts from $65.00 to $67.00 and gave the stock a “sector perform” rating in a research report on Thursday, August 13th. Barclays set a $50.00 price target on Advance Auto Parts in a research report on Friday. JPMorgan Chase & Co. dropped their price target on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating on the stock in a report on Friday, May 15th. Mizuho boosted their price objective on Advance Auto Parts from $54.00 to $58.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 26th. Finally, BMO Capital Markets upped their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the company a “market perform” rating in a research note on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Advance Auto Parts has a consensus rating of “Hold” and an average target price of $57.21.

Advance Auto Parts Stock Down 24.6%

AAP stock opened at $42.37 on Friday. The stock has a fifty day moving average of $56.94 and a 200-day moving average of $55.43. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $65.21. The company has a market capitalization of $2.56 billion, a price-to-earnings ratio of 58.85, a PEG ratio of 0.93 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78.

Advance Auto Parts (NYSE:AAP) last announced its quarterly earnings data on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.81 by $0.22. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The business had revenue of $2 billion for the quarter, compared to analysts’ expectations of $2.04 billion. During the same period in the previous year, the business posted $0.69 EPS. The firm’s quarterly revenue was down .5% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, equities research analysts predict that Advance Auto Parts will post 2.94 earnings per share for the current year.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 9th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.00 annualized dividend and a yield of 2.4%. Advance Auto Parts’s payout ratio is 138.89%.

Key Headlines Impacting Advance Auto Parts

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

• Positive Sentiment: AAP reported adjusted second-quarter earnings of $1.03 per share, well above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income rose substantially. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Management raised or maintained its full-year adjusted EPS outlook at $2.60-$3.30 and is continuing to reduce leverage. The company repaid approximately $30 million of debt principal during the quarter, lowering net leverage to 2.1 times from 2.4 times. Advance Auto Parts Q2 Takes a Hit on Weak DIY Demand
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, providing an annualized yield of approximately 2.4% at the reported price level.
• Neutral Sentiment: Some analysts view the selloff as a potential near-term opportunity, while institutional trading was mixed, with several funds adding shares and others reducing or exiting positions. Advance Auto Parts Upgrade
• Negative Sentiment: Revenue of approximately $2.0 billion missed estimates near $2.04 billion, declined year over year, and comparable-store sales fell 0.5%. Investors were particularly concerned about weaker do-it-yourself demand and “constrained” customer spending. Cash-Strapped DIY Customers Tap the Brakes
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell/Underperform rating with a $48 price target, citing ongoing DIY weakness and execution risks. Bank of America Sell Rating

Hedge Funds Weigh In On Advance Auto Parts

A number of large investors have recently modified their holdings of the company. Royal Bank of Canada increased its holdings in shares of Advance Auto Parts by 107.2% in the first quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock worth $3,119,000 after buying an additional 41,157 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Advance Auto Parts by 327.7% during the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock valued at $14,230,000 after buying an additional 278,066 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Advance Auto Parts by 14.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock valued at $7,096,000 after purchasing an additional 23,018 shares during the period. Hsbc Holdings PLC grew its position in shares of Advance Auto Parts by 3.1% in the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after buying an additional 191 shares during the period. Finally, Baird Financial Group Inc. increased its stake in shares of Advance Auto Parts by 2.7% during the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock valued at $2,640,000 after purchasing an additional 1,515 shares in the last quarter. 88.70% of the stock is owned by hedge funds and other institutional investors.

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.