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Advance Auto Parts Q3 sales miss, adjusted EPS beats estimates

By Reuters News


Overview

  • US automotive parts provider's Q3 sales declined marginally, missing analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Comparable store sales fell 1.2%, but trends improved late in the quarter


Outlook

  • Advance Auto Parts raises FY 2026 free cash flow guidance to approx. $150 mln

  • Company now expects FY 2026 net sales of approx. $8.5 bln

  • Advance Auto Parts sees FY 2026 adjusted diluted EPS between $2.75 and $3.10


Result Drivers

  • PRO CHANNEL GROWTH - Co said sales in the Pro channel grew in the low-single-digit range and outperformed overall performance, with Main Street Pro showing particular strength

  • DIY CHANNEL RECOVERY - Co said DIY sales declined in the low-single-digit range, but trends improved from negative mid-single-digit levels at the start of the quarter

  • EXPENSE MANAGEMENT - Co attributed lower SG&A as a percentage of sales to disciplined expense management


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$2.01 bln

$2.04 bln (20 Analysts)

Q3 Adjusted EPS

Beat

$0.79

$0.77 (23 Analysts)

Q3 EPS

$0.25

Q3 Gross Margin

44.60%

Q3 Comparable Sales Growth

-1.20%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 22 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

  • Wall Street's median 12-month price target for Advance Auto Parts Inc is $48.00, about 5.4% above its November 4 closing price of $50.75

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Nov 4 - Goodyear Q3 adjusted EPS misses analyst expectations on weak replacement market demand

  • Nov 3 - Aptiv Q3 revenue rises on regional sales growth

  • Nov 4 - German tire maker Continental revenue misses on portfolio changes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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