Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be reporting results tomorrow before market hours. Here’s what investors should know.
Advance Auto Parts beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.00 billion, flat year on year. It was a satisfactory quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA 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 9.7% year on year to $2.50 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.69 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 automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Genuine Parts delivered year-on-year revenue growth of 1.4%, beating analysts’ expectations by 0.5%, and O'Reilly reported revenues up 4%, falling short of estimates by 0.9%. Genuine Parts traded up 3.8% following the results while O'Reilly was down 1.7%.
Read our full analysis of Genuine Parts’s results here and O'Reilly’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 16.7% on average over the last month. Advance Auto Parts is up 4% during the same time and is heading into earnings with an average analyst price target of $40.15 (compared to the current share price of $34.25).
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