What to Expect from Advance Auto Parts’ 4Q17 Results



Advance Auto Parts’ 3Q17 recap

In 3Q17, Advance Auto Parts (AAP) reported an adjusted EPS (earnings per share) of $1.43, which reflected a drop of ~17.3% from the company’s adjusted EPS of $1.73 in the same quarter of 2016.

Advance Auto Parts’ third-quarter earnings were still much higher than analysts’ estimates of $1.23 per share. The company’s 3Q results covered its earnings for the 12 weeks ending on October 7, 2017. As a result, Advance Auto Parts stock jumped more than 16% on the day of its 3Q17 earnings announcement. In 2Q17, Advance Auto Parts also reported YoY (year-over-year) decline of ~16.8% in its adjusted EPS.

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4Q17 earnings estimates

Analysts expect the existing negative trend in Advance Auto Parts’ earnings to continue in 4Q17. According to the estimate, Advance Auto Parts’ adjusted EPS could be $0.63 in 4Q17, which would be ~37% lower than its EPS of $1.00 in the same quarter in 2016.

Consistent stagnation in the company’s sales and expectations of continued weak demand could be the primary reasons why analysts don’t expect any positive shift in its earnings.

In contrast, legacy auto manufacturers (IYK) like General Motors (GM), Ford Motor (F), and Fiat Chrysler (FCAU) reported positive growth in their 4Q17 earnings. The positive growth in auto companies’ 4Q17 results was primarily driven by solid demand for utility vehicles and trucks in the US.

Next, we’ll discuss what analysts expect from Advance Auto Parts’ 4Q17 revenue.


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