We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advance Auto Parts (AAP - Free Report) is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers.
The company’s stores and branches offer a broad selection of brand names, original equipment manufacturer (OEM), and private label automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and more.
Analysts have taken a bearish stance on the company’s earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at what’s been happening with the company.
Advance Auto Parts
Advance Auto Parts has posted weak quarterly results as of late, falling short of earnings and revenue expectations in two of its last three releases. In its latest print, the company missed EPS estimates by more than 70% and reported revenue marginally below the consensus.
As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Down nearly 60% just over the previous year, the stock has been a bear’s dream.
Image Source: Zacks Investment Research
The company’s earnings are expected to take a sizable hit, with estimates for its current fiscal year (FY23) suggesting a 58% pullback. Still, earnings growth resumes in FY24, with estimates calling for a 15% recovery in earnings on 2.3% higher revenues.
Image Source: Zacks Investment Research
The company’s next quarterly release is expected on August 22nd: the Zacks Consensus EPS Estimate of $1.59 suggests a 57% decline in earnings from the year-ago quarter, with the estimate down nearly 16% just over the last 60 days.
Further, our consensus revenue estimate for the upcoming release stands at $2.7 billion, 0.3% higher than the year-ago quarter. It’s worth noting that the quarterly revenue estimate has been revised 2.3% lower since May.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company’s shares in the near term.
Advance Auto Parts (AAP - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: Advance Auto Parts (AAP)
Advance Auto Parts (AAP - Free Report) is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers.
The company’s stores and branches offer a broad selection of brand names, original equipment manufacturer (OEM), and private label automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and more.
Analysts have taken a bearish stance on the company’s earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at what’s been happening with the company.
Advance Auto Parts
Advance Auto Parts has posted weak quarterly results as of late, falling short of earnings and revenue expectations in two of its last three releases. In its latest print, the company missed EPS estimates by more than 70% and reported revenue marginally below the consensus.
As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Down nearly 60% just over the previous year, the stock has been a bear’s dream.
Image Source: Zacks Investment Research
The company’s earnings are expected to take a sizable hit, with estimates for its current fiscal year (FY23) suggesting a 58% pullback. Still, earnings growth resumes in FY24, with estimates calling for a 15% recovery in earnings on 2.3% higher revenues.
Image Source: Zacks Investment Research
The company’s next quarterly release is expected on August 22nd: the Zacks Consensus EPS Estimate of $1.59 suggests a 57% decline in earnings from the year-ago quarter, with the estimate down nearly 16% just over the last 60 days.
Further, our consensus revenue estimate for the upcoming release stands at $2.7 billion, 0.3% higher than the year-ago quarter. It’s worth noting that the quarterly revenue estimate has been revised 2.3% lower since May.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company’s shares in the near term.
Advance Auto Parts (AAP - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.