Advance Auto Parts Q1 EPS Beats by $0.34, Comparable Sales Up 3.5%
AAP•Advance Auto Parts posted Q1 adjusted EPS of $0.77, beating the $0.43 consensus by $0.34, with revenue of $2.6 billion vs. $2.57 billion and gross margin up to 45.1%. The company reiterated fiscal 2026 EPS guidance of $2.40-$3.10 (midpoint $2.75 below estimates), and plans a $0.25 dividend plus 40-45 new stores.
1. First-Quarter Financial Results
Advance Auto Parts reported adjusted EPS of $0.77 in Q1, exceeding the $0.43 analyst estimate by $0.34. Revenue reached $2.6 billion, slightly above the $2.57 billion consensus, while gross profit margin expanded to 45.1% from 42.9% year-over-year.
2. Full-Year Outlook
The company reaffirmed its fiscal 2026 adjusted EPS guidance of $2.40 to $3.10, with a midpoint of $2.75 below the $2.80 consensus, and maintained revenue guidance at $8.49 billion to $8.58 billion against an $8.55 billion midpoint estimate.
3. Operational Highlights
Comparable store sales rose 3.5%, marking the strongest performance in five years, driven by mid-single-digit growth in the professional installer segment and low-single-digit DIY sales gains. First-quarter adjusted operating income margin expanded by 410 basis points to 3.8%.
4. Shareholder Returns and Growth Plans
Advance Auto Parts declared a $0.25 quarterly dividend payable July 24 and plans to open 40 to 45 new stores in fiscal 2026, supporting long-term network expansion.
