Advance Auto Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Advance Auto generated net revenues of $2.01 billion, which beat the Zacks Consensus Estimate of $1.98 billion. Comparable store sales increased 0.1% year over year. We expected a rise of 0.2% for the same. The top line decreased from $2.68 billion generated in the year-ago quarter.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. Quote
Gross profit decreased 10% to $874 million (43.4% of net sales). AAP reported operating income of $22 million. SG&A expenses totaled $852 million for second-quarter 2025, down 4.9% year over year.
The company had cash and cash equivalents of $1.66 billion as of July 12, 2025, compared with $1.87 billion as of Dec. 28, 2024. Total long-term debt was $1.49 billion as of July 12, 2025.
Through the second quarter of 2025, net cash used by operating activities and negative free cash flow totaled $106 million and $201 million, respectively.
As of July 12, 2025, the company operated 4,292 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 842 independently-owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
On Aug. 5, AAP declared a dividend of 25 cents per share to be paid on Oct. 24 to its shareholders as of Oct. 10, 2025.
AAP Reiterates 2025 Guidance
Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are predicted in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million.
Advance Auto's Zacks Rank & Key Picks
AAP carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are PHINIA Inc. PHIN, Gentex Corporation GNTX and Ferrari N.V. RACE. While PHIN and GNTX sport a Zacks Rank #1 (Strong Buy) each, RACE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PHIN's 2025 sales and earnings implies year-over-year flat growth and an 18.13% rise, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and 12 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for GNTX's 2025 sales and earnings indicates year-over-year growth of 9.24% and 0.57%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents in the past 30 days and 2 cents in the past seven days, respectively.
The Zacks Consensus Estimate for RACE's fiscal 2025 earnings and sales indicates year-over-year growth of 13.65% and 13.76%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 14 cents and 18 cents, respectively, in the past 30 days.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Gentex Corporation (GNTX) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
PHINIA Inc. (PHIN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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