Advance Auto Parts Gears Up for Earnings Call: What to Expect

🌥️On May 31, 2023, Advance Auto Parts will be reporting its Q1 earnings results for the current year. As one of the leading automotive aftermarket parts providers in the United States, investors and analysts have a keen interest in the company’s earnings performance. In this article, we’ll take a look at the fundamentals and technicals of the company and provide historical guidance and analyst estimates to assess what’s expected for the upcoming earnings call.

Fundamental Analysis

Let’s start with the company’s past year financials. In Q4 2022, Advance Auto Parts reported a net income of $106.7 million and total revenue of $2473.7 million. This was a decrease in net income compared to Q3 2022, which reported a net income of $111 million on total revenue of $2641.3 million. Despite this decline, the company’s diluted EPS increased from $1.84 in Q3 to $1.79 in Q4.

Moving on to Q1 2023, Advance Auto Parts reported a net income of $139.8 million on total revenue of $3374.2 million. This was an increase in both net income and total revenue compared to the same quarter in the previous year. The company’s diluted EPS for Q1 2023 was $2.26, which was also an increase compared to the same quarter in the previous year.

Technical Analysis

Next, let’s take a look at Advance Auto Parts‘ past 3-month price performance in USD. The company’s stock price has been on a downward trend over this period, experiencing a change of -19% from its high of $149.2 to its low of $109.1. However, it is worth noting that the stock price has experienced a mild recovery over the past 5 days leading up to the earnings call, with a change of -4.4%. It is important to keep an eye on the stock price during and after the earnings call to see if it is impacted in any significant way.

Historical Guidance

Looking at MorningStar’s consensus estimates history on Advance Auto Parts‘ EPS for this quarter, it appears that analysts are expecting a relatively stable earnings performance compared to the previous year. The current estimate for Adjusted EPS is $2.69, which is the same as the estimate from 7 days ago. However, it is worth noting that the estimate has slightly decreased from 30 and 60 days ago, where it was $2.71 and $2.70 respectively. It will be interesting to see whether the company’s actual earnings report confirms or deviates from these analyst estimates.

Analyst Estimates

Finally, let’s take a look at what some analysts have been saying about Advance Auto Parts in the lead up to the earnings call. Based on market sentiment, it appears that most analysts are cautiously optimistic about the company’s earnings performance. Recent news sentiment about the upcoming earnings call has been mainly positive, citing factors such as the company’s strong financial position and growth opportunities in the automotive aftermarket industry.

Conclusion

In summary, Advance Auto Parts is set to report its Q1 earnings results on May 31, 2023. Based on our analysis of the company’s fundamentals, technicals, historical guidance and analyst estimates, it appears that investors and analysts are expecting a relatively stable earnings performance compared to the previous year. While the company’s stock price has been on a downward trend over the past 3 months, recent news sentiment about the upcoming earnings call has been mainly positive. It will be interesting to see whether Advance Auto Parts‘ actual earnings report confirms or deviates from analyst estimates and how this impacts the company’s stock price. As always, investors and analysts should tune in to the earnings call to hear directly from the company’s management team and gain additional insights into the company’s financial performance.