Advance Auto Parts Beats Fourth-Quarter Earnings Estimates, Issues Mixed 2026 Outlook
Advance Auto PartsAdvance Auto Parts(US:AAP) Financial Modeling Prep·2026-02-13 21:34

Core Viewpoint - Advance Auto Parts, Inc. reported strong fourth-quarter earnings that exceeded analyst expectations, indicating positive momentum and a potential recovery in sales growth Group 1: Fourth Quarter Performance - The company delivered adjusted earnings per share of $0.86, significantly above the consensus estimate of $0.43 [1] - Revenue totaled $2.0 billion, surpassing analyst projections of $1.95 billion [1] - Comparable sales increased by 1.1% in the fourth quarter, reflecting positive momentum during the final eight weeks of the period [2] - An extra week in the quarter contributed approximately $132 million to net sales and added $0.08 to adjusted EPS [2] Group 2: Full-Year 2025 Results - For full-year 2025, Advance Auto Parts recorded a 0.8% increase in comparable store sales, marking a return to positive growth after three consecutive years of declines [3] - The company expanded its adjusted operating income margin by more than 200 basis points to 2.5%, consistent with its full-year guidance [3] Group 3: Fiscal 2026 Projections - Looking ahead to fiscal 2026, the company projected comparable sales growth of 1.0% to 2.0% [4] - Adjusted operating income margin is expected to range between 3.8% and 4.5% [4] - Earnings per share are anticipated to range from $2.40 to $3.10, compared to the analyst consensus of $2.63 [4] - Revenue is forecasted between $8.49 billion and $8.58 billion, slightly below the consensus estimate of $8.67 billion [4]