Advance Auto Parts (AAP) reports tomorrow: what to expect

Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will release an earnings report tomorrow before market hours. Here’s what to look for.

Advance Auto Parts met analysts’ revenue expectations last quarter, reporting revenue of $2.46 billion, flat year over year. It was a mixed quarter for the company, with analyst earnings estimates missing. On the other hand, Advance Auto Parts provided an optimistic full-year earnings forecast that exceeded analysts’ expectations.

Does purchasing or selling Advance Auto Parts affect your earnings? Read our full analysis here, it’s free.

Analysts expect Advance Auto Parts’ revenue to be flat year-over-year at $3.43 billion this quarter, a slowdown from the 1.3% growth reported in the same quarter last year. Adjusted earnings per share are expected to be $0.63.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Over the past two years, Advance Auto Parts has topped Wall Street revenue estimates four times.

Looking at Advance Auto Parts’ competitors in the auto parts retailer segment, some of them have already reported their first quarter results, which gives us a hint of what to expect. O’Reilly reported year-over-year revenue growth of 7.2%, which met analyst expectations, and original parts revenue was flat, 1% below estimates. Following the results, O’Reilly sales fell 3.3%, while original parts rose 12.7%.

Read our full analysis of O’Reilly’s performance here and original parts performance here.

Investors in the auto parts retail space are on a positive note, with share prices up an average of 6.7% over the past month. Meanwhile, Advance Auto Parts is down 7.8% and heading toward earnings, with an average analyst price target of $65.1 (versus the current share price of $69.51).

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