Advance Auto Parts Q1 EPS Beats, Price Target Raised to $65
AAP•Advance Auto Parts lifted its UBS price target to $65 while UBS maintained a Neutral rating. The company reported Q1 adjusted EPS of $0.77 versus $0.39 expected, with revenue of $2.61B, gross margin of 45.1% and operating margin of 3.8%.
1. UBS Maintains Neutral Rating, Raises Price Target
UBS retained a Neutral rating on Advance Auto Parts while boosting its price target to $65 from $60, reflecting modest confidence in the company’s outlook despite improving financials.
2. Q1 Earnings Performance
Advance Auto Parts delivered adjusted EPS of $0.77 in Q1, surpassing the $0.39 consensus estimate, and reported revenue of $2.61 billion, up from previous quarter levels.
3. Margin Expansion
Gross margin improved to 45.1% and operating margin expanded to 3.8% as the company implemented cost-control measures and operational efficiencies.
4. Full-Year Guidance
The company reaffirmed its full-year same-store sales growth forecast of 1% to 2%, reflecting a cautious stance on market demand despite strong quarterly results.
