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.


Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More