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On July 23, 2026, Advance Auto Parts Inc (AAP) shares fell 3.7%, closing at $53.42. This price is situated within a 52-week range of $37.89 to $70.00. The recen

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Advance Auto Parts?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Advance Auto Parts (AAP - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.88 a share, just 21 days from its upcoming earnings release on August 13, 2026.

AAP has an Earnings ESP figure of +8.04%, which, as explained above, is calculated by taking the percentage difference between the $0.88 Most Accurate Estimate and the Zacks Consensus Estimate of $0.81. Advance Auto Parts is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AAP is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Cracker Barrel Old Country Store (CBRL - Free Report) as well.

Cracker Barrel Old Country Store is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on September 16, 2026. CBRL's Most Accurate Estimate sits at -$0.20 a share 55 days from its next earnings release.

The Zacks Consensus Estimate for Cracker Barrel Old Country Store is -$0.33, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +38.78%.

AAP and CBRL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Advance Auto Parts (AAP - Free Report) Advance Auto Parts, Inc. operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, light and heavy-duty trucks. It is a leading automotive parts provider in North America, serving both the do-it-yourself or DIY and professional installers (professional) as well as independently owned operators.

AAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.7; value investors should take notice.

For fiscal 2026, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $2.94 per share. AAP boasts an average earnings surprise of +62.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AAP should be on investors' short list.

On July 06, 2026, Advance Auto Parts Inc (AAP) shares fell 8.4% today, closing at $56.33. This decline comes after a week of losses, with the stock down 8.6% ov

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Expanded partnership supports store-based fulfillment, delivery orchestration and supply chain modernization initiatives

RALEIGH, N.C. & ORLANDO, Fla.--(BUSINESS WIRE)--Advance Auto Parts (NYSE: AAP), a leading automotive aftermarket parts provider in North America serving both professional installers and do-it-yourself customers, and OneRail, the AI-native technology platform orchestrating unified commerce for enterprise retailers, wholesalers and distributors, today announced an expanded partnership that will broaden Advance’s use of OneRail’s delivery orchestration platform to support same-day fulfillment across its store network.

The expanded partnership supports Advance’s ongoing investments in supply chain modernization, inventory availability, market hubs and store-based fulfillment. By leveraging OneRail’s orchestration technology, Advance aims to more dynamically coordinate deliveries across internal fleet assets and third-party delivery providers, helping improve flexibility, reliability, and operational efficiency.

“In our industry, speed and availability are what earn customer loyalty, and our customers’ expectations have never been higher,” said Ron Gilbert, Senior Vice President of Supply Chain at Advance Auto Parts. “OneRail is helping us improve delivery execution while giving us greater flexibility in how we serve customers. As we continue expanding same-day fulfillment capabilities, this partnership will help us leverage our growing store and market hub network more effectively to deliver a better customer experience.”

The partnership builds on more than four years of collaboration between the companies. During that time, OneRail has supported delivery orchestration across more than 4,000 locations throughout the Advance network, helping coordinate tens of millions of annual deliveries through a combination of internal fleet resources and third-party delivery capacity.

“OneRail's role is to help enterprise retailers turn inventory availability into fulfillment capability,” said Bill Catania, Founder and CEO of OneRail. “Advance Auto Parts has made significant investments in its supply chain and store network, and we're proud to help connect those investments with a flexible fulfillment model that can scale with customer demand.”

The expanded partnership further supports Advance’s work to deliver a seamless customer experience across professional and consumer channels and create a more agile and responsive fulfillment network.

About OneRail

OneRail is the AI technology platform that orchestrates profitable same-day delivery for enterprise retailers, wholesalers and distributors. Powered by its OmniPoint® platform and backed by a 24/7 U.S.-based Exceptions Assist™ team, OneRail connects inventory, transportation and the customer experience in a single real-time transaction, giving leading brands the delivery infrastructure to compete at scale without building it themselves. In March 2026, FedEx selected OneRail as the technology and network partner powering FedEx SameDay® Local. OneRail built OmniSTAR, the first AI-powered mode-agnostic delivery decisioning platform, in collaboration with NVIDIA. OneRail is headquartered in Orlando, Florida, with global operations. To learn more, visit onerail.com.

About Advance Auto Parts

Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of April 25, 2026, Advance operated 4,308 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 797 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings, can be found at www.AdvanceAutoParts.com.

Advance Auto Parts (AAP - Free Report) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to a loss of $0.22 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +95.23%. A quarter ago, it was expected that this auto parts retailer would post earnings of $0.41 per share when it actually produced earnings of $0.86, delivering a surprise of +109.76%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Advance Auto Parts, which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $2.61 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $2.58 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Advance Auto Parts shares have added about 30.4% since the beginning of the year versus the S&P 500's gain of 8.6%.

What's Next for Advance Auto Parts?While Advance Auto Parts has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Advance Auto Parts was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.85 on $2.04 billion in revenues for the coming quarter and $2.77 on $8.55 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Wholesale - Parts is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, CarMax (KMX - Free Report) , has yet to report results for the quarter ended May 2026.

This used car dealership chain is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of -31.9%. The consensus EPS estimate for the quarter has been revised 9.3% lower over the last 30 days to the current level.

CarMax's revenues are expected to be $7.58 billion, up 0.5% from the year-ago quarter.

3 Under-the-Radar Earnings Surprises Could Signal a New TrendAdvance Auto Parts NYSE: AAP reported what executives described as a solid start to fiscal 2026, with first-quarter comparable sales rising 3.5%, the company’s strongest quarterly growth in five years.

President and Chief Executive Officer Shane O’Kelly said the results were driven primarily by the company’s Pro channel, particularly its focus on Main Street professional customers, along with improved parts availability and customer service. The DIY channel also returned to positive growth after softness in the prior quarter.

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From Rust to Riches: 2 Auto Parts Names Built for 2026“Our Q1 performance reflects continued improvement in parts availability and customer service, which is helping us respond to favorable industry dynamics,” O’Kelly said on the company’s earnings call.

Sales Improve as Pro Business Leads Executive Vice President and Chief Financial Officer Ryan Grimsland said net sales for the quarter were $2.6 billion, up 1% from the prior year. Comparable sales increased 3.5%, offset in part by a two-point headwind from cycling $51 million in liquidation sales tied to store optimization activity completed in the first quarter of last year.

Advance Auto Parts is A Great Risk/Reward Play If EPS DeliversGrimsland said the quarter included early benefits from winter storms, which drove sales of failure-related items, though temporary store closures and delayed maintenance spending also caused some disruption. Sales trends improved beginning in mid-February as consumers used tax refunds and resumed maintenance spending amid better weather in March. Overall, he said weather was not a material driver of first-quarter results.

By channel, Pro comparable sales grew in the mid-single-digit range, with monthly growth consistently in that range. Grimsland said the company’s Main Street Pro business outperformed the overall Pro comp by more than 200 basis points, even as Advance continues to optimize its large national account Pro business.

The DIY channel posted low double-digit comparable sales growth, though Grimsland said performance remains tempered by inflation and stretched household budgets. Ticket was positive, with same-SKU inflation of about 3%, in line with expectations. Transaction volumes improved in both channels, and units per transaction continued to rise.

Margins Expand on Merchandising Initiatives Adjusted gross profit was approximately $1.2 billion, or 45.1% of net sales, representing more than 210 basis points of gross margin expansion from the prior year. Grimsland attributed the improvement mainly to product margin expansion and merchandising initiatives.

Adjusted SG&A was approximately $1.1 billion, or 41.3% of net sales, providing roughly 200 basis points of leverage. SG&A declined 3% year over year as the company cycled about $37 million in expenses tied to last year’s store optimization project. Adjusted operating income was $99 million, or 3.8% of net sales, up 410 basis points year over year. Adjusted diluted earnings per share were $0.77, compared with a loss of $0.22 in the prior-year period.

Free cash outflow improved to $75 million from an outflow of $198 million a year earlier, which Grimsland attributed to stronger operating performance, improved working capital management and lower cash restructuring costs. Inventory rose about 5% from year-end 2025 as the company invested in product depth and breadth across its network.

Company Reaffirms 2026 Outlook Advance Auto Parts reaffirmed its full-year guidance. The company expects net sales of approximately $8.5 billion and comparable sales growth of 1% to 2%, with each quarter expected to deliver positive same-store sales growth. Management said the first half should be stronger due to easier comparisons and first-quarter performance.

Same-SKU inflation is expected to be in the 2% to 3% range for the year, and Grimsland said recent tariff regulations have not changed the company’s inflation expectations. The company expects Pro to outperform DIY, with both channels contributing positively to comparable sales growth.

For 2026, Advance expects adjusted operating income margin of 3.8% to 4.5%, representing 130 to 200 basis points of year-over-year expansion. Gross margin is expected to expand 110 to 150 basis points to approximately 45%, driven mainly by merchandising initiatives, including strategic vendor sourcing and pricing and promotions optimization.

The company also projected adjusted diluted EPS of $2.40 to $3.10, capital expenditures of approximately $300 million, and free cash flow of about $100 million. Advance plans to open 40 to 45 new stores and 10 to 15 market hubs during the year.

Strategic Priorities Focus on Merchandising, Supply Chain and Stores O’Kelly said Advance’s strategy remains built on three pillars: merchandising, supply chain and store operations. He said the company continues to work toward a medium-term target of 7% adjusted operating margin.

In merchandising, O’Kelly cited improved vendor relationships, better internal processes and a new assortment framework intended to improve product placement. He said expanded assortment in brakes and undercar categories is helping the company capture more Main Street Pro business.

The company also launched its owned oil brand, ARGOS, which O’Kelly said has met expectations and is now one of Advance’s top brands in the category. The brand has expanded beyond motor oil into hydraulic oils, antifreeze, performance chemicals and washer fluid.

Advance also replaced its Speed Perks loyalty program with Advance Rewards during the quarter. O’Kelly said new member sign-ups, program penetration and total transactions from loyalty members have increased since launch.

On supply chain, O’Kelly said the consolidation of distribution centers is nearing completion, allowing the company to focus on standardizing operations and improving productivity. He said the company expects supply chain process improvements to support gross margin expansion in 2027 and beyond.

Advance has opened two additional market hubs so far this year, bringing its total to 35. The company is targeting 60 market hubs in 2027. Grimsland said markets with a hub ecosystem are performing about 100 basis points better than those without one.

Executives Caution on Consumer Spending During the question-and-answer portion of the call, executives said second-quarter comparable sales are expected to moderate from the first quarter and remain in line with the company’s guidance range. Grimsland said Advance does not expect major tax refund tailwinds to continue and is monitoring potential volatility in consumer spending, particularly as households face pressure from elevated gas prices.

Grimsland said the period between tax refunds and peak driving season can be difficult to gauge, and the company will watch consumer behavior after Memorial Day. Still, he noted that less than 10% of the company’s business is discretionary.

“This is a needs-based business,” Grimsland said. “The cars need to start, they have to stop.”

O’Kelly said the company’s first-quarter growth was “roughly in line with the market” and reflected progress in parts availability, service and execution. He said Advance remains focused on continuing its strategic plan and improving operational productivity.

About Advance Auto Parts NYSE: AAPAdvance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Advance Auto Parts (AAP - Free Report) reported $2.61 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 1.2%. EPS of $0.77 for the same period compares to -$0.22 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.56 billion, representing a surprise of +2.08%. The company delivered an EPS surprise of +95.23%, with the consensus EPS estimate being $0.39.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Advance Auto Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable store sales - YoY change: 3.5% versus the six-analyst average estimate of 1.6%.Number of stores (Retail) - Total: 4,308 versus the three-analyst average estimate of 4,317.Number of stores - AAP: 4,070 versus the three-analyst average estimate of 4,077.Number of stores opened: 4 versus the two-analyst average estimate of 13.Number of stores (BOP): 4,305 versus 4,305 estimated by two analysts on average.Number of stores - CARQUEST: 238 versus the two-analyst average estimate of 241.View all Key Company Metrics for Advance Auto Parts here>>>

Shares of Advance Auto Parts have returned -14% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Advance Auto Parts delivered strong Q1 results, with EPS of $0.77 and 3.5% same-store sales growth, signaling tangible turnaround progress. Gross margin improved 130bps to 45.1%, and operating margin expanded 410bps to 3.8%, reflecting successful merchandising and cost control initiatives. AAP maintained conservative full-year guidance despite Q1 outperformance, with EPS expected at $2.40-$3.10 and same-store sales growth of 1%-2%.

Advance Auto Parts, Inc. (AAP) Q1 2026 Earnings Call Transcript

Key Takeaways AAP earned 77 cents per share in Q1, topping estimates as comparable sales rose 3.5%.Advance Auto Parts expanded gross margin to 45.1% on merchandising gains and lower restructuring costs.AAP reaffirmed 2026 sales and earnings guidance while planning up to 45 new stores in 2026. Advance Auto Parts, Inc. (AAP - Free Report) delivered adjusted earnings of 77 cents per share in the first quarter of 2026, beating the Zacks Consensus Estimate of 39 cents by 95.2%. The company had incurred an adjusted loss of 22 cents in the year-ago quarter.

Net sales were $2.61 billion, which increased 1.2% year over year and came ahead of the Zacks Consensus Estimate of $2.56 billion by 2.1%. Comparable store sales increased 3.5% in the quarter, marking the strongest quarterly comp in five years.

AAP Builds Momentum in Pro and DIY DemandAAP’s top line reflected improving trends as the quarter progressed, supported by better parts availability and customer service. The Pro channel was the primary sales driver, with mid-single-digit comparable growth tied to its focus on “Main Street Pro,” while DIY posted low-single-digit growth. The company’s category strength was in brakes, undercar and engine management.

Advance Auto Parts Widens Gross Margin on MerchandisingProfitability improved sharply in the quarter. Gross profit was $1.18 billion, translating to a gross margin of 45.1% compared with 42.9% in the prior-year period. AAP attributed the margin expansion primarily to product margin gains supported by merchandising initiatives, alongside the benefit of cycling margin headwinds tied to its store optimization program that concluded in the first quarter of 2025.

The company reported LIFO-related cost pressure during the quarter. Even with that headwind, the gross margin improvement was meaningful, setting up a stronger earnings flow-through versus last year.

AAP Shows Expense Discipline as Restructuring Costs FadeOperating performance swung notably year over year. Operating income was $69 million versus an operating loss of $131 million a year ago. Restructuring and related expenses fell to $32 million from $118 million in the year-ago quarter, reflecting the reduced burden from prior optimization actions.

On an adjusted basis, operating income was $99 million, producing an adjusted operating margin of 3.8% versus an adjusted loss margin of 0.3% a year earlier. Adjusted SG&A expenses were 41.3% of sales, down from 43.2% in the prior-year quarter, aided by lapping expenses from closed stores and stronger sales performance.

Advance Auto Parts Liquidity Remains AmpleAs of April 25, 2026, AAP had $2.96 billion in cash and cash equivalents, down from $3.12 billion as of Jan. 3, 2026. Inventories rose to $3.82 billion from $3.65 billion as of Jan, 3, 2026, reflecting higher investment in availability. Long-term debt stood at $3.41 billion.

Cash flow trends improved from last year. Net cash used in operating activities was $19 million versus $156 million in the prior-year quarter, while capital spending totaled $56 million. AAP also paid $30 million in dividends during the period.

AAP Reaffirms 2026 Guideposts and Growth PlansAAP reaffirmed its full-year 2026 outlook. The company continues to expect net sales of $8.49-$8.58 billion, with comparable store sales growth of 1-2% (52 weeks). It projects an adjusted operating income margin of 3.8-4.5% and adjusted earnings of $2.40-$3.10 per share.

Capital deployment remains geared toward network and infrastructure initiatives. AAP expects capital expenditures of approximately $300 million and free cash flow of about $100 million, alongside plans to open 40-45 stores and 10-15 market hubs in 2026. As of April 25, 2026, Advance Auto has 4,308 stores mainly across the United States, along with locations in Canada, Puerto Rico and the U.S. Virgin Islands. The company also supported 797 independently owned Carquest stores in these markets, as well as in Mexico and several Caribbean islands.

The company also declared a regular quarterly dividend of 25 cents per share, payable July 24, 2026, to shareholders of record as of July 10, 2026.

AAP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer ReleasesO'Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2026 results on April 29. It reported adjusted EPS of 72 cents, which beat the Zacks Consensus Estimate of 69 cents by 4.18%. The bottom line increased from 62 cents in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.56 billion, which surpassed the Zacks Consensus Estimate of $4.47 billion by 2.1%. The top line also rose 10.2% year over year.

The quarter was driven by strong demand, with comparable store sales rising 8.1%. Growth in both the professional and DIY segments, along with careful cost control, supported the overall performance. The company opened 59 stores in the United States, Mexico and Canada in the first quarter. The total store count was 6,644 as of March 31, 2026.

Genuine Parts Company (GPC - Free Report) reported first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share.

The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%.

Advance Auto Parts Inc. (NYSE:AAP) on Thursday posted stronger-than-expected quarterly results.

The company reported first-quarter adjusted earnings per share of 77 cents, beating the analyst consensus estimate of 45 cents. Quarterly sales of $2.614 billion outpaced the Street view of $2.579 billion.

Advance Auto Parts affirmed fiscal 2026 adjusted EPS guidance of $2.40 to $3.10, compared with the analyst estimate of $2.76. The company also maintained its fiscal 2026 sales outlook of $8.485 billion to $8.575 billion versus the Street estimate of $8.556 billion.

Advance Auto Parts shares fell 1% to trade at $58.04 on Friday.

These analysts made changes to their price targets on Advance Auto Parts following earnings announcement.

Considering buying AAP stock? Here’s what analysts think:

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Multi-channel campaign uses nostalgia, features real motorists to emotionally connect with Americans

RALEIGH, N.C.--(BUSINESS WIRE)--Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installers and do-it-yourself customers, today introduced “Good Parts,” a new brand campaign that heroes and humanizes the qualities of American motorists and Advance’s commitment to get them where they want to be – the good parts of their lives.

The new campaign aligns with the celebration of America’s 250th birthday. Advance’s “Good Parts” campaign is anchored by a 60-second video that emotionally connects the company’s 94-year history to motorists through a nostalgic lens, drawing from familiar life moments and timeless cues highlighting the trips, memories and milestones experienced in America’s modern history.

“Good Parts is a return to our roots and focuses on what matters most in our business: helping people get back on the road quickly and back to their lives,” said Bruce Starnes, Chief Merchandising Officer at Advance Auto Parts. “America is a country built on movement and Advance has been around almost as long as Americans have been driving. We’re proud of our legacy of helping millions of people advance to what matters most to them.”

The campaign launches as Americans prepare for summer travel – a natural inflection point for automobile maintenance needs. Authenticity is the engine of the “Good Parts” campaign, which was shot at eight locations in four cities and includes real motorists.

Advance will air general market and Spanish-language versions of the “Good Parts” video across multiple social media platforms, including Meta, TikTok and Reddit, as well as on YouTube and connected TV, display and search advertising, and audio platforms, including Spotify and Pandora.

“Good Parts” will also greet customers who visit Advance’s more than 4,000 stores across America with nostalgia-inspired exterior signage, in-store signage and point-of-sale materials.

And on May 31, Advance will display “Good Parts” creative in a full paint scheme on the Team Penske No. 12 Ford Mustang Dark Horse piloted by NASCAR Cup Series Champion Ryan Blaney in the Cracker Barrel 400 at Nashville Superspeedway.

As part of the new brand campaign, Advance is introducing a new jingle that translates the company’s commitment to getting customers to the good parts into an auditory signature reflecting three core brand pillars: ease, confidence and forward momentum. The jingle is part of the 60-second video and will air across all media channels and digital touchpoints.

About Advance Auto Parts

Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of April 25, 2026, Advance operated 4,308 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 797 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.

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Stock to Watch: Advance Auto Parts (AAP - Free Report) Advance Auto Parts, Inc. operates in the U.S. automotive aftermarket industry and is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, light and heavy-duty trucks. It is a leading automotive parts provider in North America, serving both the do-it-yourself or DIY and professional installers (professional) as well as independently owned operators.

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