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Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Advance Auto Parts (NYSE:AAP) and its peers.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.6% since the latest earnings results.
Best Q4: Advance Auto Parts (NYSE:AAP)
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.00 billion, flat year on year. This print exceeded analysts’ expectations by 2.9%. Despite the top-line beat, it was still a mixed quarter for the company with full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
"During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation,” said Shane O'Kelly, president and chief executive officer.
Advance Auto Parts achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 5% since reporting and currently trades at $37.69.
Is now the time to buy Advance Auto Parts? Access our full analysis of the earnings results here, it’s free.
Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.77 billion, up 3.3% year on year, outperforming analysts’ expectations by 1%. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.