Advance Auto Parts Beats Q1 Estimates, Analysts Lift Price Targets

Benzinga reported Friday that Advance Auto Parts Inc. (NYSE: AAP) delivered first-quarter results that comfortably cleared Wall Street expectations. The retailer posted adjusted earnings per share of 77 cents, nearly double the consensus forecast of 45 cents. Revenue reached $2.614 billion against analyst expectations of $2.579 billion.

Comparable Sales Drive the Outperformance

The quarterly beat was underpinned by a 3.5% rise in comparable store sales. The professional installer channel delivered mid-single-digit growth. The do-it-yourself segment added low-single-digit gains on top of that. CEO Shane O’Kelly credited the results to improved transaction volumes and consistent customer service execution. He described operational discipline as the engine behind margin expansion and stronger asset productivity.

Full-Year Guidance Held Steady

Despite the quarterly beat, Advance Auto Parts left its full-year outlook unchanged. Management reaffirmed adjusted EPS guidance of $2.40 to $3.10 for fiscal 2026. That range sits around the analyst consensus of $2.76. The company also stood by its fiscal 2026 revenue forecast of $8.485 billion to $8.575 billion. The Street had modeled approximately $8.556 billion for the year.

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Background: A Retailer in Restructuring Mode

Advance Auto Parts has spent the past several quarters navigating a significant operational reset. The company sold its Worldpac distribution business in late 2024 to sharpen its focus on core retail operations. O’Kelly, who joined as CEO in late 2023, has been pushing a cost-reduction and store-productivity program. That restructuring context makes the Q1 comparable sales acceleration particularly meaningful to investors tracking a turnaround thesis.

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Shares Slip Despite the Beat

Wall Street’s initial response was muted. AAP shares fell roughly 1% to trade near $58 on Friday. That softness likely reflects the unchanged full-year guidance range rather than disappointment with the quarter itself. BMO Capital analyst Tristan Thomas-Martin maintained a Market Perform rating on the stock while nudging his price target higher following the print. Other analysts made similar modest adjustments. The held guidance suggests management remains cautious about the broader consumer spending environment through the rest of 2026.

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