Roth Capital Issues Pessimistic Outlook for AAP Earnings

Advance Auto Parts, Inc. (NYSE:AAP) – Research analysts at Roth Capital reduced their Q4 2025 EPS estimates for shares of Advance Auto Parts in a research note issued to investors on Friday, October 31st. Roth Capital analyst S. Stember now anticipates that the company will earn $0.41 per share for the quarter, down from their previous estimate of $0.43. Roth Capital has a “Neutral” rating and a $55.00 price objective on the stock. The consensus estimate for Advance Auto Parts’ current full-year earnings is ($0.46) per share. Roth Capital also issued estimates for Advance Auto Parts’ Q1 2026 earnings at $0.43 EPS, Q2 2026 earnings at $0.66 EPS, Q3 2026 earnings at $0.80 EPS, Q4 2026 earnings at $0.66 EPS, FY2026 earnings at $2.55 EPS and FY2027 earnings at $3.90 EPS.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.92 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.18. The business had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $2.02 billion. Advance Auto Parts had a negative return on equity of 1.97% and a negative net margin of 4.37%.Advance Auto Parts’s quarterly revenue was down 5.2% on a year-over-year basis. During the same period in the prior year, the business posted ($0.04) earnings per share. Advance Auto Parts has set its FY 2025 guidance at 1.750-1.850 EPS.

Several other equities research analysts have also recently weighed in on AAP. Evercore ISI increased their price target on Advance Auto Parts from $56.00 to $58.00 and gave the company an “in-line” rating in a research note on Tuesday, August 12th. Weiss Ratings reiterated a “sell (d)” rating on shares of Advance Auto Parts in a research report on Wednesday, October 8th. Mizuho increased their price objective on shares of Advance Auto Parts from $44.00 to $54.00 and gave the stock a “neutral” rating in a research report on Friday, August 29th. DA Davidson cut their price target on shares of Advance Auto Parts from $63.00 to $55.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Wells Fargo & Company increased their price target on Advance Auto Parts from $45.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday, August 15th. One equities research analyst has rated the stock with a Buy rating, nineteen have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $51.78.

Advance Auto Parts Trading Down 7.0%

Shares of AAP stock opened at $47.16 on Monday. The stock has a market cap of $2.83 billion, a price-to-earnings ratio of -7.40 and a beta of 1.08. The stock has a 50-day moving average of $58.07 and a 200-day moving average of $51.87. The company has a current ratio of 1.27, a quick ratio of 0.49 and a debt-to-equity ratio of 0.68. Advance Auto Parts has a 1-year low of $28.89 and a 1-year high of $70.00.

Advance Auto Parts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be issued a $0.25 dividend. The ex-dividend date is Friday, January 9th. This represents a $1.00 annualized dividend and a yield of 2.1%. Advance Auto Parts’s dividend payout ratio is presently -15.90%.

Institutional Investors Weigh In On Advance Auto Parts

Several hedge funds and other institutional investors have recently modified their holdings of AAP. AMG National Trust Bank lifted its position in shares of Advance Auto Parts by 38.1% during the first quarter. AMG National Trust Bank now owns 43,615 shares of the company’s stock valued at $1,710,000 after purchasing an additional 12,040 shares in the last quarter. Gainplan LLC bought a new stake in shares of Advance Auto Parts during the 2nd quarter valued at $700,000. Pzena Investment Management LLC increased its holdings in Advance Auto Parts by 1.9% during the 2nd quarter. Pzena Investment Management LLC now owns 4,394,964 shares of the company’s stock worth $204,322,000 after acquiring an additional 82,456 shares during the period. Raymond James Financial Inc. increased its holdings in shares of Advance Auto Parts by 13.0% in the first quarter. Raymond James Financial Inc. now owns 210,886 shares of the company’s stock worth $8,269,000 after purchasing an additional 24,342 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Advance Auto Parts by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,741,701 shares of the company’s stock worth $107,500,000 after purchasing an additional 13,412 shares during the period. Institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.