In this article:
Market News

Advance Auto Parts Tops 2Q Estimates Driven By Same-Store Sales

In this article:
In this article:

Advance Auto Parts reported a better-than-expected profit in the second quarter, driven by faster same-store sales growth. Shares rose 1.2% on Tuesday.

Advance Auto Parts (AAP) posted adjusted earnings of $2.92 in 2Q, topping Street estimates of $1.98. Earnings increased 46% year-over-year in 2Q, driven by solid sales and improved margins. Its revenues of $2.5 billion beat the consensus estimate of $2.38 billion. Sales climbed 7.3% year-over-year, helped by same-store sales growth of 7.5%, which exceeded analysts’ expectations of a 2.7% increase.

The auto parts retailer said that it continues to see “strong growth in DIY Omnichannel and positive comparable store sales in Professional” through the first five weeks of the third quarter. The company also stated that despite the COVID-19-related uncertainties through the balance of the year, “it is well positioned to meet the demands of the business.”

Following the results, Oppenheimer analyst Brian Nagel said in a research report that “auto parts retail has emerged as a winner amid the ongoing COVID-19 crisis.”

“We are turning more optimistic that improved and potentially sustained top line expansion should leverage better an increasingly efficient and lean infrastructure of AAP,” Nagel added. Nonetheless, the analyst maintained a Hold rating on AAP stock as he awaits “further data before turning more constructive on shares.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys, 3 Holds, and 2 Sells. With shares up of over 20% so far this year, the average price target of $151.13 now implies downside potential of 7.2%. (See AAP stock analysis on TipRanks).

Related News:
D.A. Davidson Lifts Palo Alto’s PT Ahead Of 4Q Results Next Week
Needham Lifts Fabrinet’s PT After 4Q Earnings Beat
Mizuho Cuts Micron’s PT On Weak ‘Enterprise Demand’

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