Zacks Research Issues Positive Outlook for AAP Earnings

Advance Auto Parts, Inc. (NYSE:AAP) – Investment analysts at Zacks Research raised their Q2 2026 earnings estimates for shares of Advance Auto Parts in a report released on Friday, February 27th. Zacks Research analyst Team now anticipates that the company will earn $0.80 per share for the quarter, up from their prior forecast of $0.69. The consensus estimate for Advance Auto Parts’ current full-year earnings is ($0.46) per share. Zacks Research also issued estimates for Advance Auto Parts’ Q3 2026 earnings at $0.89 EPS, Q4 2026 earnings at $0.66 EPS, FY2026 earnings at $2.72 EPS, Q2 2027 earnings at $1.06 EPS, Q3 2027 earnings at $1.13 EPS, Q4 2027 earnings at $0.90 EPS and FY2027 earnings at $3.75 EPS.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings data on Friday, February 13th. The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. The firm had revenue of $1.97 billion for the quarter, compared to analysts’ expectations of $1.95 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The company’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS.

Several other equities analysts have also recently issued reports on AAP. Truist Financial boosted their target price on Advance Auto Parts from $48.00 to $57.00 and gave the company a “hold” rating in a research note on Tuesday, February 17th. Morgan Stanley set a $60.00 price objective on shares of Advance Auto Parts in a research report on Tuesday, February 17th. DA Davidson set a $58.00 price objective on shares of Advance Auto Parts in a report on Tuesday, February 17th. Northcoast Research raised shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 target price on the stock in a research note on Wednesday, January 21st. Finally, Citigroup raised shares of Advance Auto Parts from a “hold” rating to a “buy” rating in a research note on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Advance Auto Parts presently has an average rating of “Hold” and a consensus target price of $53.03.

Advance Auto Parts Trading Up 2.2%

AAP opened at $53.15 on Monday. Advance Auto Parts has a one year low of $28.89 and a one year high of $70.00. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. The business has a 50 day simple moving average of $47.71 and a two-hundred day simple moving average of $52.12. The firm has a market capitalization of $3.19 billion, a price-to-earnings ratio of 72.81, a PEG ratio of 0.72 and a beta of 1.11.

Advance Auto Parts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be paid a $0.25 dividend. The ex-dividend date is Friday, April 10th. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. Advance Auto Parts’s dividend payout ratio is presently 136.99%.

Institutional Investors Weigh In On Advance Auto Parts

Several hedge funds have recently added to or reduced their stakes in AAP. Price T Rowe Associates Inc. MD grew its stake in shares of Advance Auto Parts by 18.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock worth $293,751,000 after acquiring an additional 1,190,094 shares during the last quarter. Federated Hermes Inc. boosted its stake in Advance Auto Parts by 4.4% in the 4th quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after purchasing an additional 117,648 shares in the last quarter. State Street Corp grew its position in Advance Auto Parts by 3.9% during the 4th quarter. State Street Corp now owns 2,499,981 shares of the company’s stock valued at $98,249,000 after purchasing an additional 92,861 shares during the last quarter. American Century Companies Inc. increased its stake in Advance Auto Parts by 559.0% during the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after purchasing an additional 1,288,986 shares in the last quarter. Finally, Royce & Associates LP lifted its stake in shares of Advance Auto Parts by 30.5% in the fourth quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock worth $58,110,000 after buying an additional 345,217 shares in the last quarter. 88.70% of the stock is owned by 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.