Advance Auto (NYSE:AAP) Stock Plunges on Q3 Miss, Guidance Cut
Market News

Advance Auto (NYSE:AAP) Stock Plunges on Q3 Miss, Guidance Cut

Story Highlights

Advance Auto Parts stock plummeted as investors were unhappy with the company’s third-quarter results lagging estimates, and lower earnings outlook for the full-year 2022.

Advance Auto Parts (NYSE:AAP) shares lost more than 11% in Tuesday’s extended trading hours on disappointing third-quarter results and a weak full-year earnings forecast. Q3 performance was hit by increased penetration of lower-priced in-house brands. AAP stock is down more than 20% year-to-date.

The automotive parts provider reported adjusted earnings per share of $2.84, which compared unfavorably with $3.21 in the prior-year quarter. Also, the reported figure was much below Wall Street’s earnings estimate of $3.32.

Further, revenue rose about 1% to $2.64 billion but marginally lagged analysts’ expectations of $2.65 billion. Advance Auto explained that increased focus on lower-priced owned brand products hurt sales, to some extent.

Coming to the outlook, the company reiterated its 2022 net sales forecast of $11.0 to $11.2 billion but lowered full-year earnings guidance. Advance Auto now expects adjusted earnings per share of $12.60 to $12.80, compared with prior guidance of $12.75 to $13.25. The forecast has primarily been reduced to reflect forex headwinds.

Is AAP Stock a Buy?

AAP stock has a Moderate Buy consensus rating based on 10 Buys and four Holds. The average Advance Auto stock price target of $211.69 implies 15.09% upside potential.



Price Change
S&P 500
Dow Jones
Nasdaq 100

Popular Articles