Advance Auto Parts (NYSE:AAP) Shares Gap Up on Better-Than-Expected Earnings

Advance Auto Parts, Inc. (NYSE:AAP) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $58.22, but opened at $63.00. Advance Auto Parts shares last traded at $57.1450, with a volume of 803,935 shares changing hands.

The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.41 by $0.45. Advance Auto Parts had a negative net margin of 4.37% and a positive return on equity of 0.64%. The business had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.95 billion. During the same period in the prior year, the business earned ($10.16) earnings per share. The company’s quarterly revenue was down 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS.

Advance Auto Parts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, April 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. Advance Auto Parts’s dividend payout ratio (DPR) is presently -15.90%.

Key Stories Impacting Advance Auto Parts

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

• Positive Sentiment: Q4 beat on EPS and revenue — Advance reported $0.86 EPS vs. $0.41 expected and $1.973B in sales vs. ~$1.95B consensus, marking a swing to profitability vs. prior year losses. BusinessWire: Q4 results & guidance
• Positive Sentiment: Margins and turnaround signs — Management highlighted margin recovery and narrowing losses; several writeups note improving profitability and execution on the restructuring plan. Barron’s: Turnaround continues
• Positive Sentiment: Comparable sales returned to positive growth, supporting the narrative that the turnaround is gaining traction. Seeking Alpha: Comparable sales growth
• Positive Sentiment: Board declared a quarterly cash dividend of $0.25/share (paid April 24; ex‑dividend April 10), a sign of confidence in cash generation. Seeking Alpha: Dividend announcement
• Neutral Sentiment: 2026 guidance is mixed — management gave an EPS range of $2.40–$3.10 (around Street expectations) but set revenue guidance slightly below consensus ($8.5–8.6B vs. ~$8.7B), making the outlook balanced between optimism on margins and caution on top‑line recovery. Yahoo Finance: Beats and guidance
• Neutral Sentiment: Analyst stance remains cautious — William Blair kept a Hold rating, saying early turnaround progress is encouraging but not yet enough to upgrade. Watch for further analyst revisions. TipRanks: Hold rating
• Negative Sentiment: Revenue weakness and store closures — Q4 revenue was down ~1.2% year‑over‑year and the company continues to close stores as part of restructuring, a drag on top‑line growth despite profit improvement. WSJ: Profit amid store closures

Wall Street Analysts Forecast Growth

Several research firms have issued reports on AAP. Evercore ISI set a $60.00 price target on shares of Advance Auto Parts in a research note on Wednesday. UBS Group reissued a “neutral” rating on shares of Advance Auto Parts in a research note on Monday. Morgan Stanley lowered their target price on shares of Advance Auto Parts from $55.00 to $45.00 and set an “equal weight” rating for the company in a research note on Thursday, January 15th. Weiss Ratings reiterated a “sell (d)” rating on shares of Advance Auto Parts in a report on Wednesday, January 21st. Finally, Truist Financial set a $48.00 price objective on Advance Auto Parts in a research report on Wednesday, December 17th. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Advance Auto Parts has a consensus rating of “Hold” and a consensus price target of $51.41.

Institutional Investors Weigh In On Advance Auto Parts

Several large investors have recently made changes to their positions in the business. Salomon & Ludwin LLC acquired a new position in shares of Advance Auto Parts during the third quarter worth about $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Advance Auto Parts during the 3rd quarter valued at about $31,000. AlphaCore Capital LLC lifted its position in Advance Auto Parts by 53.6% during the 4th quarter. AlphaCore Capital LLC now owns 883 shares of the company’s stock worth $35,000 after acquiring an additional 308 shares in the last quarter. Hantz Financial Services Inc. lifted its position in Advance Auto Parts by 184.5% during the 4th quarter. Hantz Financial Services Inc. now owns 919 shares of the company’s stock worth $36,000 after acquiring an additional 596 shares in the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after acquiring an additional 688 shares during the period. Institutional investors and hedge funds own 88.70% of the company’s stock.

Advance Auto Parts Price Performance

The company has a debt-to-equity ratio of 1.55, a current ratio of 1.73 and a quick ratio of 0.88. The company has a market cap of $3.53 billion, a price-to-earnings ratio of -9.36 and a beta of 1.14. The company’s 50-day simple moving average is $45.86 and its 200-day simple moving average is $52.37.

Advance Auto Parts Company Profile

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.