Insights into Advance Auto Parts's Upcoming Earnings Report
Overview of Advance Auto Parts Earnings
Advance Auto Parts (NYSE: AAP) is anticipated to release its latest quarterly earnings report soon. Investors are keenly awaiting this announcement, hoping for positive surprises that could influence the stock price significantly.
Expected Earnings Details
Analysts forecast that Advance Auto Parts will achieve an earnings per share (EPS) of $0.59. This expectation reflects both optimism and caution as the company navigates the competitive automotive retail landscape.
Anticipation Among Investors
The release of earnings from Advance Auto Parts tends to generate considerable attention. Investors are especially focused on whether the company will meet or exceed analysts' expectations and provide favorable guidance for the upcoming quarter. Guidance is frequently a major driver of stock price movements, making it essential for both current and potential investors to monitor closely.
Reviewing Past Performance
In the company’s last earnings report, it surpassed EPS estimates but still faced a minor 1.02% share price decline the very next session.
Historical Earnings Performance Metrics
During the previous quarters, the following data outlines Advance Auto Parts's earnings trajectory:
Earnings and Price Change Overview
Quarterly Data:
- Q1 2025 Estimated EPS: -0.69
- Q1 2025 Actual EPS: -0.22
- Q4 2024 EPS Estimate: -1.18
- Q4 2024 EPS Actual: -1.18
- Price Change for Q1 2025: -1.0%
Current Share Performance
As of the recent trading day, shares of Advance Auto Parts were priced at $59.11, marking a 3.85% decline over the past year. Such performance metrics might shift investor sentiment towards the upcoming earnings report.
Understanding Analyst Ratings
Analyzing market sentiment towards Advance Auto Parts reveals valuable insights. There have been 19 analyst ratings, with a consensus leaning towards a Neutral stance. The one-year price target for the stock stands at $49.11, indicating a potential downside of about 16.92%.
Insights into Competitors
To put this in context, we can compare Advance Auto Parts's predictions and analyst outlooks with its peers:
- Sonic Automotive: Analysts favor a Buy rating with a price target of $84.86, suggesting a possible 43.56% upside.
- Asbury Automotive Group: Rated as Underperform with a target of $258.33, indicating potential growth of 337.03%.
- Valvoline: Assigned an Outperform rating, with a forecast of $44.33, suggesting an expected decline of 25%.
Comparative Analysis Summary
In summary, here are essential metrics to consider:
- Advance Auto Parts: Neutral rating, with negative revenue growth of -6.82%.
- Sonic Automotive: Positive growth of 5.91% with a strong Buy consensus.
- Asbury Automotive Group: Moderate performance with an Underperform rating.
- Valvoline: Shows steady growth with potential to outperform its current market standing.
Looking Deeper into Advance Auto Parts
Advance Auto Parts has established itself as one of the primary auto-parts retailers across North America, offering over 4,000 locations. Sales are strategically split between professional channels and do-it-yourself customers, emphasizing the importance of efficient operations. Customers highly value inventory availability and service speed, which are critical to the company’s competitive edge.
Analyzing Financials
The company’s financial health remains a topic of interest:
- Market Capitalization: Below average for the industry, suggesting room for growth.
- Revenue Decline: Recent reports indicate a concerning -6.82% drop in revenue growth.
- Net Margin: Currently at 0.93%, showing challenges in profitability.
- Return on Equity: Positioned at 1.1%, below typical industry returns.
- Debt Ratio: A debt-to-equity ratio of 1.67 indicates a fairly manageable debt situation.
Conclusion
Advance Auto Parts is currently placed amongst its industry peers, with mixed messages towards both performance and future expectations. The central challenges lie in revenue growth and profitability metrics, which will be important to watch as the company moves forward.
Frequently Asked Questions
What is Advance Auto Parts expecting for its upcoming earnings report?
The company anticipates reporting an EPS of $0.59, reflecting cautious optimism among analysts.
How has Advance Auto Parts performed historically during earnings?
In past earnings reports, Advance Auto Parts often surpassed estimates but faced stock price drops shortly after.
What are analysts saying about the stock?
Current analysis suggests a Neutral rating, with peer comparisons revealing both strengths and vulnerabilities.
How does Advance Auto Parts's performance compare to its competitors?
Compared to peers, Advance Auto Parts is noted to have lower revenue growth but remains an established player in the market.
What are some key financial metrics for Advance Auto Parts?
The company shows a -6.82% revenue growth and a net margin of 0.93%, signaling financial pressures that require attention.
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