Advance Auto Parts Achieves Strongest Sales Growth in Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: seekingalpha
- Significant Sales Growth: Advance Auto Parts achieved a 3.5% comparable sales growth in Q1 2026, surpassing the market expectation of 2.2%, indicating successful efforts to reengage DIY customers and driving shares up by 8% in premarket trading.
- Net Sales Increase: Despite operating fewer stores, total net sales reached $2.61 billion in the first quarter, exceeding expectations by $40 million, demonstrating the company's resilience and adaptability in a competitive market, further solidifying its market position.
- Improved Profit Performance: Adjusted gross profit stood at $1.2 billion, accounting for 45.1% of net sales, an increase from 42.9% in 2025, reflecting successful merchandising initiatives despite facing a 90 basis point margin headwind.
- Cautious Future Outlook: Despite strong Q1 results, Advance Auto Parts maintained its full-year net sales guidance between $8.485 billion and $8.575 billion, indicating uncertainty about future market conditions and a conservative approach that may affect investor confidence.
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Analyst Views on AAP
Wall Street analysts forecast AAP stock price to rise
12 Analyst Rating
1 Buy
10 Hold
1 Sell
Hold
Current: 51.240
Low
40.00
Averages
51.55
High
65.00
Current: 51.240
Low
40.00
Averages
51.55
High
65.00
About AAP
Advance Auto Parts, Inc. is an automotive aftermarket parts provider in North America, serving both professional installers (professional) and do-it-yourself (DIY) customers, as well as independently owned operators. The Company's stores and branches offer a range selection of brand names, original equipment manufacturer (OEM) and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy-duty trucks. The Company operates approximately 4,788 stores primarily within the United States (U.S.), with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves approximately 934 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Its stores operate primarily under the Advance Auto Parts and Carquest trade names.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Advance Auto Parts Declares Quarterly Dividend of $0.25
- Quarterly Dividend Announcement: Advance Auto Parts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stability and commitment to returning value to shareholders in the current market environment.
- Dividend Yield: The forward yield of 1.95% reflects the company's ability to maintain shareholder returns, providing investors with a relatively stable cash flow amidst market fluctuations.
- Payment Schedule: The dividend is payable on July 24, with a record date of July 7 and an ex-dividend date also set for July 7, ensuring shareholders receive their earnings promptly, which bolsters investor confidence.
- Earnings Beat Expectations: Advance Auto Parts reported a non-GAAP EPS of $0.77, exceeding expectations by $0.33, while revenue reached $2.61 billion, surpassing forecasts by $40 million, showcasing the positive progress made during the company's turnaround efforts.
See More
Advance Auto Parts Achieves Strongest Sales Growth in Five Years
- Significant Sales Growth: Advance Auto Parts achieved a 3.5% comparable sales growth in Q1 2026, surpassing the market expectation of 2.2%, indicating successful efforts to reengage DIY customers and driving shares up by 8% in premarket trading.
- Net Sales Increase: Despite operating fewer stores, total net sales reached $2.61 billion in the first quarter, exceeding expectations by $40 million, demonstrating the company's resilience and adaptability in a competitive market, further solidifying its market position.
- Improved Profit Performance: Adjusted gross profit stood at $1.2 billion, accounting for 45.1% of net sales, an increase from 42.9% in 2025, reflecting successful merchandising initiatives despite facing a 90 basis point margin headwind.
- Cautious Future Outlook: Despite strong Q1 results, Advance Auto Parts maintained its full-year net sales guidance between $8.485 billion and $8.575 billion, indicating uncertainty about future market conditions and a conservative approach that may affect investor confidence.
See More
Advance Auto Parts Reaffirms 2026 Financial Guidance
- Guidance Reaffirmation: Advance Auto Parts projects adjusted earnings for fiscal 2026 to be between $2.40 and $3.10 per share, with net sales expected to range from $8.435 billion to $8.575 billion, and comparable store sales growth of 1.0% to 2.0%, indicating strong confidence in future performance.
- Quarterly Financial Results: The company reported a net income of $24 million for the first quarter, translating to $0.40 per share, flat compared to the prior year, while adjusted earnings improved to $0.77 per share from an adjusted loss of $0.22 per share last year, reflecting a recovery in profitability.
- Sales Growth: Net sales for the quarter increased slightly to $2.61 billion from $2.58 billion in the same quarter last year, with comparable store sales rising by 3.5%, demonstrating enhanced competitiveness in the market.
- Dividend Announcement: The company declared a regular cash dividend of $0.25 per share to be paid on July 24, 2026, to all common stockholders of record as of July 10, 2026, further enhancing shareholder returns and showcasing confidence in future cash flows.
See More
Advance Auto Parts Q1 Earnings Beat Expectations with Strong Guidance
- Strong Earnings Report: Advance Auto Parts reported a Q1 non-GAAP EPS of $0.77, beating expectations by $0.33, which reflects the company's robust performance in the market and boosts investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $2.61 billion, representing a 1.2% year-over-year increase and exceeding market expectations by $40 million, indicating stable sales growth in a competitive landscape.
- 2026 Financial Guidance: Advance Auto Parts projects net sales for 2026 to range between $8.485 billion and $8.575 billion, with adjusted EPS expected between $2.40 and $3.10, showcasing management's confidence in future performance.
- Capital Expenditures and Cash Flow: The company anticipates capital expenditures of approximately $300 million and free cash flow of around $100 million, which will support future growth and investments, further solidifying its market position.
See More
Walmart and Nio Stock Market Dynamics Analysis
- Walmart Stock Performance: Walmart's stock has risen 16% this year, nearly double the S&P 500, despite four out of the last five earnings reports resulting in declines, indicating increased consumer demand for value shopping under inflationary pressures.
- Active Options Trading: On Wednesday, Walmart was the most actively traded stock in options with over 154,000 contracts exchanged, where more puts were traded than calls, yet more premium was spent on calls, reflecting market expectations for future price increases.
- Nio's Stock Movement: Nio's stock is up 9% year-to-date, despite a 2% drop in the Hang Seng Index, highlighting its popularity among speculators for low-priced contracts, with over 110,000 calls traded on Wednesday, suggesting optimism about its future performance.
- Advance Auto Parts Strong Performance: Advance Auto Parts has surged 32% year-to-date, with options traders optimistic about further gains, as call volume was nearly three times that of puts on Wednesday, indicating strong market confidence in its robust performance.
See More
Q1 Sales Growth of 3.5% with Significant Margin Expansion
- Sales Growth Highlight: In Q1 2026, comparable sales grew by 3.5%, with mid-single-digit growth in Pro and low-single-digit growth in DIY, reflecting the company's ongoing commitment to customer service and a rebound in market demand.
- Margin Expansion: The adjusted operating income margin expanded by 410 basis points year-over-year to 3.8% in Q1, primarily driven by improved product margins and the successful implementation of optimization plans, enhancing the company's profitability and competitive position.
- Cost Control Success: SG&A expenses for Q1 totaled $1.1 billion, representing 42.5% of net sales, a significant decrease from 48% in the prior year, indicating effective measures in operational optimization and cost control, further improving overall financial health.
- Positive Future Outlook: The company projects full-year 2026 net sales between $8.485 billion and $8.575 billion, with comparable store sales growth expected at 1% to 2%, demonstrating management's confidence in future market performance and the effectiveness of strategic planning.
See More
Advance Auto Parts Declares Quarterly Dividend of $0.25
- Quarterly Dividend Announcement: Advance Auto Parts has declared a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stability and commitment to returning value to shareholders in the current market environment.
- Dividend Yield: The forward yield of 1.95% reflects the company's ability to maintain shareholder returns, providing investors with a relatively stable cash flow amidst market fluctuations.
- Payment Schedule: The dividend is payable on July 24, with a record date of July 7 and an ex-dividend date also set for July 7, ensuring shareholders receive their earnings promptly, which bolsters investor confidence.
- Earnings Beat Expectations: Advance Auto Parts reported a non-GAAP EPS of $0.77, exceeding expectations by $0.33, while revenue reached $2.61 billion, surpassing forecasts by $40 million, showcasing the positive progress made during the company's turnaround efforts.
See More
Advance Auto Parts Achieves Strongest Sales Growth in Five Years
- Significant Sales Growth: Advance Auto Parts achieved a 3.5% comparable sales growth in Q1 2026, surpassing the market expectation of 2.2%, indicating successful efforts to reengage DIY customers and driving shares up by 8% in premarket trading.
- Net Sales Increase: Despite operating fewer stores, total net sales reached $2.61 billion in the first quarter, exceeding expectations by $40 million, demonstrating the company's resilience and adaptability in a competitive market, further solidifying its market position.
- Improved Profit Performance: Adjusted gross profit stood at $1.2 billion, accounting for 45.1% of net sales, an increase from 42.9% in 2025, reflecting successful merchandising initiatives despite facing a 90 basis point margin headwind.
- Cautious Future Outlook: Despite strong Q1 results, Advance Auto Parts maintained its full-year net sales guidance between $8.485 billion and $8.575 billion, indicating uncertainty about future market conditions and a conservative approach that may affect investor confidence.
See More
Advance Auto Parts Reaffirms 2026 Financial Guidance
- Guidance Reaffirmation: Advance Auto Parts projects adjusted earnings for fiscal 2026 to be between $2.40 and $3.10 per share, with net sales expected to range from $8.435 billion to $8.575 billion, and comparable store sales growth of 1.0% to 2.0%, indicating strong confidence in future performance.
- Quarterly Financial Results: The company reported a net income of $24 million for the first quarter, translating to $0.40 per share, flat compared to the prior year, while adjusted earnings improved to $0.77 per share from an adjusted loss of $0.22 per share last year, reflecting a recovery in profitability.
- Sales Growth: Net sales for the quarter increased slightly to $2.61 billion from $2.58 billion in the same quarter last year, with comparable store sales rising by 3.5%, demonstrating enhanced competitiveness in the market.
- Dividend Announcement: The company declared a regular cash dividend of $0.25 per share to be paid on July 24, 2026, to all common stockholders of record as of July 10, 2026, further enhancing shareholder returns and showcasing confidence in future cash flows.
See More
Advance Auto Parts Q1 Earnings Beat Expectations with Strong Guidance
- Strong Earnings Report: Advance Auto Parts reported a Q1 non-GAAP EPS of $0.77, beating expectations by $0.33, which reflects the company's robust performance in the market and boosts investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $2.61 billion, representing a 1.2% year-over-year increase and exceeding market expectations by $40 million, indicating stable sales growth in a competitive landscape.
- 2026 Financial Guidance: Advance Auto Parts projects net sales for 2026 to range between $8.485 billion and $8.575 billion, with adjusted EPS expected between $2.40 and $3.10, showcasing management's confidence in future performance.
- Capital Expenditures and Cash Flow: The company anticipates capital expenditures of approximately $300 million and free cash flow of around $100 million, which will support future growth and investments, further solidifying its market position.
See More
Walmart and Nio Stock Market Dynamics Analysis
- Walmart Stock Performance: Walmart's stock has risen 16% this year, nearly double the S&P 500, despite four out of the last five earnings reports resulting in declines, indicating increased consumer demand for value shopping under inflationary pressures.
- Active Options Trading: On Wednesday, Walmart was the most actively traded stock in options with over 154,000 contracts exchanged, where more puts were traded than calls, yet more premium was spent on calls, reflecting market expectations for future price increases.
- Nio's Stock Movement: Nio's stock is up 9% year-to-date, despite a 2% drop in the Hang Seng Index, highlighting its popularity among speculators for low-priced contracts, with over 110,000 calls traded on Wednesday, suggesting optimism about its future performance.
- Advance Auto Parts Strong Performance: Advance Auto Parts has surged 32% year-to-date, with options traders optimistic about further gains, as call volume was nearly three times that of puts on Wednesday, indicating strong market confidence in its robust performance.
See More
Q1 Sales Growth of 3.5% with Significant Margin Expansion
- Sales Growth Highlight: In Q1 2026, comparable sales grew by 3.5%, with mid-single-digit growth in Pro and low-single-digit growth in DIY, reflecting the company's ongoing commitment to customer service and a rebound in market demand.
- Margin Expansion: The adjusted operating income margin expanded by 410 basis points year-over-year to 3.8% in Q1, primarily driven by improved product margins and the successful implementation of optimization plans, enhancing the company's profitability and competitive position.
- Cost Control Success: SG&A expenses for Q1 totaled $1.1 billion, representing 42.5% of net sales, a significant decrease from 48% in the prior year, indicating effective measures in operational optimization and cost control, further improving overall financial health.
- Positive Future Outlook: The company projects full-year 2026 net sales between $8.485 billion and $8.575 billion, with comparable store sales growth expected at 1% to 2%, demonstrating management's confidence in future market performance and the effectiveness of strategic planning.
See More
