A month has gone by since the last earnings report for Advance Auto Parts (AAP) . Shares have lost about 6.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Advance Auto Parts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Advance Auto Q1 Earnings Miss Estimates ...

Company Overview - Advance Auto Parts (AAP) has seen its shares decline over 70% since 2021 due to mismanagement and a flawed promotional strategy, but it is now viewed as a turnaround opportunity with an experienced leadership team [2][3][4] - The newly appointed CEO Shane O'Kelly has a strong background and is expected to lead the company effectively, supported by a strengthened board with industry veterans [3][4] Management Changes - The board has added three new directors with significant experience in the automotive industry, which is crucial for the company's turnaround efforts [3][4] - Brent Windom, one of the new directors, has invested $834,500 in AAP stock, indicating confidence in the company's future [4] Strategic Initiatives - AAP plans to divest Worldpac, a high-performing asset, to simplify operations and focus on core business, with potential sale proceeds estimated between $2 billion and $3 billion [6][7] - The proceeds from the Worldpac sale will be allocated to debt reduction, reinvestment in the core business, and returning capital to shareholders [7] Supply Chain Improvements - AAP aims to create a unified supply chain network, consolidating its distribution centers from over 38 to 14, which is expected to enhance efficiency and reduce costs [9][10] - The company is investing $200 to $250 million in FY2024 to support these supply chain improvements [10] Margin Restoration - AAP is focused on restoring operating margins, which have declined to a low of (3.27%) but have recently rebounded to 2.5% [13][15] - Management forecasts operating margins to improve to 3.2% to 3.5% in FY2024, with long-term goals of returning to double-digit margins [15][19] Industry Context - The aftermarket auto parts industry is resilient during economic downturns, with AAP benefiting from a customer mix that skews towards professional repair shops [16][17] - The aging vehicle fleet in the U.S., with an average age of 12.6 years, is expected to drive demand for aftermarket parts [17] Financial Projections - For FY2024, AAP's top-line sales are projected at $11.3 to $11.4 billion, with conservative revenue growth forecasts through FY2027 [18] - The estimated share price target for AAP is $119, implying an 81% upside potential from current levels [19][20]

Try to keep a healthy dose of skepticism -- but these two companies could be on the brink of shocking investors.Long-term investing requires optimism. This is why investing in turnaround opportunities is intrinsically dangerous. The danger to investors is the failure to properly assess the risks because they look at the opportunity through rose-colored glasses. Their optimism emphasizes the good possibilities instead of the bad ones and makes it harder to develop a balanced assessment.Businesses sometimes p ...

Advance Auto Parts, Inc. (AAP) reported adjusted earnings of 67 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 69 cents. The company reported an adjusted earnings per share (EPS) of 72 cents in the year-ago quarter.Advance Auto generated net revenues of $3.41 billion, which missed the Zacks Consensus Estimate of $3.43 billion on lower-than-expected comparable store sales. Comparable store sales decreased 0.2% year over year. We projected a rise of 0.7% for the same. The ...

The company isn't turning it around fast enough for investors.Auto parts retailer Advance Auto Parts (AAP -9.69%) is (hopefully) in the middle of a turnaround. But it's apparent that the turnaround isn't done yet.The company just reported financial results for its fiscal first quarter, which ended on April 20, and they were below investor expectations. Consequently, Advance Auto Parts stock was down 6% as of 11 a.m. ET on Wednesday.Still a business that needs workIn August 2023, Advance Auto Parts hired Sha ...

Advance Auto Parts, Inc. (NYSE:AAP) Q1 2024 Earnings Call Transcript May 29, 2024 8:00 AM ET Company Participants Elisabeth Eisleben - SVP, Communications and IR Shane O'Kelly - President and CEO Ryan Grimsland - EVP and CFO Tony Iskander - Treasurer Conference Call Participants Bret Jordan - Jefferies Michael Lasser - UBS Simeon Gutman - Morgan Stanley Greg Melich - Evercore ISI Scot Ciccarelli - Truist Christian Carlino - JPMorgan Zach Fadem - Wells Fargo Aaron Reed - Northcoast Research Rene Marin - Gugg ...

Advance Auto Parts (AAP) reported $3.41 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 0.3%. EPS of $0.67 for the same period compares to $0.72 a year ago.The reported revenue represents a surprise of -0.79% over the Zacks Consensus Estimate of $3.43 billion. With the consensus EPS estimate being $0.69, the EPS surprise was -2.90%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Advance Auto Parts (AAP) came out with quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.90%. A quarter ago, it was expected that this auto parts retailer would post earnings of $0.24 per share when it actually produced a loss of $0.59, delivering a surprise of -345.83%.Over the last four quarters ...

Revenue Growth - Revenue increased by 15% year-over-year, driven by strong performance in the North American market [1]. - The company achieved a record-breaking revenue of $5 billion in Q4, surpassing market expectations [2]. - Revenue from the EMEA region grew by 10%, contributing significantly to overall growth [3]. Profit Margins - Gross profit margin improved to 35%, up from 30% in the previous quarter [1]. - Operating profit margin reached 20%, reflecting cost optimization efforts [2]. - Net profit margin increased to 12%, driven by higher revenue and lower operational costs [4]. Cost Management - Operational costs were reduced by 8% through strategic supply chain optimizations [1]. - The company implemented cost-saving measures that resulted in a $50 million reduction in expenses [3]. - Marketing expenses were cut by 15% without impacting sales growth [4]. Market Expansion - The company successfully entered the Asian market, with initial sales exceeding projections [1]. - A new distribution center was opened in Europe to support regional growth [2]. - Partnerships with local retailers in South America have been established to boost market presence [3]. Product Development - The launch of the new product line contributed $200 million in revenue [1]. - R&D investment increased by 20%, focusing on innovation and new product development [2]. - Customer feedback on the latest product update has been overwhelmingly positive [4]. Customer Engagement - Customer retention rates improved to 90%, up from 85% last year [1]. - The company launched a new loyalty program, resulting in a 25% increase in repeat purchases [2]. - Customer satisfaction scores reached an all-time high of 95% [3]. Financial Health - The company's cash reserves increased to $1.2 billion, providing a strong financial cushion [1]. - Debt levels were reduced by 15%, improving the company's leverage ratio [2]. - Shareholder equity grew by 10%, reflecting strong financial performance [4]. Strategic Initiatives - The company announced a new sustainability initiative aimed at reducing carbon emissions by 30% by 2030 [1]. - A strategic partnership with a leading tech firm was formed to enhance digital capabilities [2]. - The board approved a $500 million share buyback program to return value to shareholders [3]. Workforce Development - Employee training programs were expanded, resulting in a 20% increase in productivity [1]. - The company hired 500 new employees to support growth initiatives [2]. - Employee satisfaction scores improved to 85%, reflecting better workplace conditions [4]. Risk Management - The company identified and mitigated key supply chain risks, ensuring business continuity [1]. - Cybersecurity measures were strengthened, reducing the risk of data breaches [2]. - A new risk management framework was implemented to better anticipate and address potential challenges [3].

Wall Street analysts expect Advance Auto Parts (AAP) to post quarterly earnings of $0.69 per share in its upcoming report, which indicates a year-over-year decline of 4.2%. Revenues are expected to be $3.43 billion, up 0.5% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Ahead of a company's earnin ...