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Factors to Shape Advance Auto Parts (AAP) Q1 Earnings Report
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Advance Auto Parts, Inc. (AAP - Free Report) is slated to announce first-quarter 2022 results on May 23, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $3.50 per share and $3.37 billion, respectively.
The Zacks Consensus Estimate for Advance Auto Parts’ first-quarter earnings per share has been revised downward by 3 cents in the past 30 days. The bottom-line projection, however, implies year-over-year growth of 4.8%. The Zacks Consensus Estimate for quarterly revenues suggests a marginal increase of 1.3% on a year-over-year basis.
This aftermarket auto parts distributor delivered better-than-anticipated earnings in the last reported quarter on higher-than-expected comparable store sales growth. Over the trailing four quarters, Advance Auto Parts surpassed estimates on all occasions, with the average surprise being 11%.
Our proven model predicts an earnings beat for Advance Auto Parts this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Advance Auto Parts has an Earnings ESP of +4.89%. This is because the Most Accurate Estimate is pegged 17 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Increasing buyers’ appetite for personal mobility is anticipated to have fueled the demand for automotive replacement parts, accessories, batteries and maintenance items. Advance Auto Parts’ upcoming results are likely to get a boost from the same.
AAP is also likely to have gained from the digital ramp-up and rising e-commerce initiatives. The significant advancement of its DIY omni-channel digital platform and enhancements to the online portal, MyAdvance, are expected to have increased traffic and resulted in higher conversion rates, which are likely to have boosted revenues during the quarter in discussion.
The completion of the rollout of cross-banner replenishment is likely to have delivered savings. The firm’s Warehouse Management Systems and Labor Management System initiatives remained on track and are expected to have driven productivity.
AAP’s first-quarter results are likely to reflect the benefits from its strengthening foothold through the opening of new stores. The Zacks Consensus Estimate for the total number of retail stores at fourth quarter-end is pegged at 5,009, indicating growth from the last quarter and the year-ago quarter’s store count of 4,972 and 4,791, respectively.
The upbeat 2022 sales and profit outlook sparks optimism for the upcoming results. Advance Auto estimates 2022 net sales in the band of $11.2-$11.5 billion, up from 2021 sales of $10.99 billion. Adjusted EPS is forecast between $13.20 and $13.75, up from $12.02 in 2021.
Earnings Whispers for AZO
AAP’s close peer AutoZone (AZO - Free Report) is slated to report its third-quarter fiscal 2022 results on May 24, before the opening bell. Our model predicts an earnings beat for the company as it has the right combination of a favorable Zacks Rank and positive Earnings ESP. AZO currently carries a Zacks Rank #3 and has an Earnings ESP of +2.51%.
The Zacks Consensus Estimate for AZO’s to-be-reported quarter’s earnings and sales is pegged at $25.70 a share and $3.70 billion, respectively. Over the trailing four quarters, AutoZone surpassed estimates on all occasions, the average surprise being 26%.
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Factors to Shape Advance Auto Parts (AAP) Q1 Earnings Report
Advance Auto Parts, Inc. (AAP - Free Report) is slated to announce first-quarter 2022 results on May 23, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $3.50 per share and $3.37 billion, respectively.
The Zacks Consensus Estimate for Advance Auto Parts’ first-quarter earnings per share has been revised downward by 3 cents in the past 30 days. The bottom-line projection, however, implies year-over-year growth of 4.8%. The Zacks Consensus Estimate for quarterly revenues suggests a marginal increase of 1.3% on a year-over-year basis.
This aftermarket auto parts distributor delivered better-than-anticipated earnings in the last reported quarter on higher-than-expected comparable store sales growth. Over the trailing four quarters, Advance Auto Parts surpassed estimates on all occasions, with the average surprise being 11%.
Advance Auto Parts, Inc. Price and EPS Surprise
Advance Auto Parts, Inc. price-eps-surprise | Advance Auto Parts, Inc. Quote
What Does Our Model Say?
Our proven model predicts an earnings beat for Advance Auto Parts this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Advance Auto Parts has an Earnings ESP of +4.89%. This is because the Most Accurate Estimate is pegged 17 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Advance Auto Parts currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
Increasing buyers’ appetite for personal mobility is anticipated to have fueled the demand for automotive replacement parts, accessories, batteries and maintenance items. Advance Auto Parts’ upcoming results are likely to get a boost from the same.
AAP is also likely to have gained from the digital ramp-up and rising e-commerce initiatives. The significant advancement of its DIY omni-channel digital platform and enhancements to the online portal, MyAdvance, are expected to have increased traffic and resulted in higher conversion rates, which are likely to have boosted revenues during the quarter in discussion.
The completion of the rollout of cross-banner replenishment is likely to have delivered savings. The firm’s Warehouse Management Systems and Labor Management System initiatives remained on track and are expected to have driven productivity.
AAP’s first-quarter results are likely to reflect the benefits from its strengthening foothold through the opening of new stores. The Zacks Consensus Estimate for the total number of retail stores at fourth quarter-end is pegged at 5,009, indicating growth from the last quarter and the year-ago quarter’s store count of 4,972 and 4,791, respectively.
The upbeat 2022 sales and profit outlook sparks optimism for the upcoming results. Advance Auto estimates 2022 net sales in the band of $11.2-$11.5 billion, up from 2021 sales of $10.99 billion. Adjusted EPS is forecast between $13.20 and $13.75, up from $12.02 in 2021.
Earnings Whispers for AZO
AAP’s close peer AutoZone (AZO - Free Report) is slated to report its third-quarter fiscal 2022 results on May 24, before the opening bell. Our model predicts an earnings beat for the company as it has the right combination of a favorable Zacks Rank and positive Earnings ESP. AZO currently carries a Zacks Rank #3 and has an Earnings ESP of +2.51%.
The Zacks Consensus Estimate for AZO’s to-be-reported quarter’s earnings and sales is pegged at $25.70 a share and $3.70 billion, respectively. Over the trailing four quarters, AutoZone surpassed estimates on all occasions, the average surprise being 26%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.