Advance Auto Q1 Loss Narrower Than Expected, Revenues Fall Y/Y

Advance Auto Parts, Inc. AAP reported an adjusted loss of 22 cents per share for the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The company reported adjusted earnings of 67 cents per share in the year-ago quarter.

Advance Auto generated net revenues of $2.58 billion, which topped the Zacks Consensus Estimate of $2.50 billion. Comparable store sales decreased 0.6% year over year. We projected a decline of 2% for the same. The top line decreased from $2.77 billion generated in the year-ago quarter.

Advance Auto Parts, Inc. Price, Consensus and EPS Surprise

Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. Quote

Gross profit decreased 7.9% to $1.1 million (42.9% of net sales). AAP reported operating loss of $131 million. SG&A expenses totaled $1.2 billion for first-quarter 2024, up 7.7% year over year.

The company had cash and cash equivalents of $1.67 billion as of April 19, 2025, compared with $1.87 billion as of Dec. 28, 2024. Total long-term debt was $1.49 billion as of April 19, 2025.

In 2024, net cash used by operating activities and negative free cash flow totaled $156 million and $198 million, respectively.

As of April 19, 2025, the company operated 4,285 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 881 independently-owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.

On May 13, 2025, AAP declared a dividend of 25 cents a share to be paid on July 25, 2025, to shareholders as of July 11, 2025.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

AAP Reiterates 2025 Guidance

Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are projected in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million.

Advance Auto’s Zacks Rank & Other Key Picks

AAP sports a Zacks Rank #1 (Strong Buy) at present.

Some other top-ranked stocks in the auto space are Ferrari N.V. RACE, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 37.06%. EPS estimates for 2025 and 2026 have improved 2 cents and 12 cents, respectively, in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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