Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be announcing earnings results tomorrow before market hours. Here’s what to expect.
Advance Auto Parts met analysts’ revenue expectations last quarter, reporting revenues of $2.68 billion, flat year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
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 1.9% year on year to $2.67 billion, a reversal from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advance Auto Parts has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Advance Auto Parts’s peers in the auto parts retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. O'Reilly delivered year-on-year revenue growth of 3.8%, missing analysts’ expectations by 1.3%, and Genuine Parts reported revenues up 2.5%, in line with consensus estimates. O'Reilly’s stock price was unchanged after the results, while Genuine Parts was down 18.8%.
Read our full analysis of O'Reilly’s results here and Genuine Parts’s results here.
Investors in the auto parts retailer segment have had steady hands going into earnings, with share prices flat over the last month. Advance Auto Parts is up 1.6% during the same time and is heading into earnings with an average analyst price target of $47.60 (compared to the current share price of $40.10).
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