Advance Auto Parts (NYSE:AAP) Shares Gap Up on Strong Earnings

Shares of Advance Auto Parts, Inc. (NYSE:AAP) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $58.22, but opened at $63.00. Advance Auto Parts shares last traded at $57.1450, with a volume of 803,935 shares changing hands.

The company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. The company had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.95 billion. Advance Auto Parts had a negative net margin of 4.37% and a positive return on equity of 0.64%. The firm’s revenue was down 1.2% compared to the same quarter last year. During the same period in the prior year, the business posted ($10.16) EPS. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS.

Advance Auto Parts Dividend Announcement

The firm also recently announced 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 of this dividend is Friday, April 10th. This represents a $1.00 annualized dividend and a dividend yield of 1.7%. Advance Auto Parts’s dividend payout ratio (DPR) is presently -15.90%.

More Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Q4 beat on EPS and revenue — Advance reported $0.86 EPS vs. $0.41 expected and $1.973B in sales vs. ~$1.95B consensus, marking a swing to profitability vs. prior year losses. BusinessWire: Q4 results & guidance
• Positive Sentiment: Margins and turnaround signs — Management highlighted margin recovery and narrowing losses; several writeups note improving profitability and execution on the restructuring plan. Barron’s: Turnaround continues
• Positive Sentiment: Comparable sales returned to positive growth, supporting the narrative that the turnaround is gaining traction. Seeking Alpha: Comparable sales growth
• Positive Sentiment: Board declared a quarterly cash dividend of $0.25/share (paid April 24; ex‑dividend April 10), a sign of confidence in cash generation. Seeking Alpha: Dividend announcement
• Neutral Sentiment: 2026 guidance is mixed — management gave an EPS range of $2.40–$3.10 (around Street expectations) but set revenue guidance slightly below consensus ($8.5–8.6B vs. ~$8.7B), making the outlook balanced between optimism on margins and caution on top‑line recovery. Yahoo Finance: Beats and guidance
• Neutral Sentiment: Analyst stance remains cautious — William Blair kept a Hold rating, saying early turnaround progress is encouraging but not yet enough to upgrade. Watch for further analyst revisions. TipRanks: Hold rating
• Negative Sentiment: Revenue weakness and store closures — Q4 revenue was down ~1.2% year‑over‑year and the company continues to close stores as part of restructuring, a drag on top‑line growth despite profit improvement. WSJ: Profit amid store closures

Analysts Set New Price Targets

Several research firms recently weighed in on AAP. Wells Fargo & Company lifted their price target on shares of Advance Auto Parts from $40.00 to $50.00 and gave the company an “equal weight” rating in a report on Wednesday. Evercore ISI set a $60.00 target price on Advance Auto Parts in a research report on Wednesday. BMO Capital Markets restated a “market perform” rating and set a $55.00 price target on shares of Advance Auto Parts in a research report on Friday, October 31st. TD Cowen decreased their price objective on Advance Auto Parts from $62.00 to $46.00 and set a “hold” rating for the company in a report on Tuesday, January 20th. Finally, Citigroup upgraded shares of Advance Auto Parts from a “hold” rating to a “buy” rating in a report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $51.41.

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors have recently modified their holdings of the business. Royal Bank of Canada lifted its stake in Advance Auto Parts by 107.2% during the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after acquiring an additional 41,157 shares during the period. Goldman Sachs Group Inc. increased its position in Advance Auto Parts by 327.7% in the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after buying an additional 278,066 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Advance Auto Parts by 14.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock worth $7,096,000 after acquiring an additional 23,018 shares during the period. KLP Kapitalforvaltning AS lifted its stake in shares of Advance Auto Parts by 2.5% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 12,500 shares of the company’s stock valued at $581,000 after buying an additional 300 shares in the last quarter. Finally, Yousif Capital Management LLC boosted its stake in shares of Advance Auto Parts by 1.8% in the second quarter. Yousif Capital Management LLC now owns 26,470 shares of the company’s stock worth $1,231,000 after acquiring an additional 476 shares during the period. 88.70% of the stock is owned by hedge funds and other institutional investors.

Advance Auto Parts Stock Performance

The stock has a market cap of $3.53 billion, a P/E ratio of 80.66 and a beta of 1.14. The firm’s 50-day moving average price is $45.86 and its 200-day moving average price is $52.34. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.73 and a quick ratio of 0.88.

Advance Auto Parts Company Profile

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.