Advance Auto Parts
Advance Auto Parts (AAP), one of the top three US auto parts retailers by market cap, is scheduled to release its 4Q17 earnings on February 21, 2018. Before we start exploring analysts’ estimates for the company’s upcoming earnings, let’s take a quick look at its recent stock price movement.
As of February 13, 2018, Advance Auto Parts stock was trading at $106.22 with a positive return of ~6.6% in 1Q18. Other US auto part sellers (XLY), O’Reilly Automotive (ORLY) and AutoZone (AZO) have risen marginally by 2% and 0.1%, respectively, on a year-to-date basis.
Despite Advance Auto Parts’ weakening profit margins, investors’ high expectations from its fourth-quarter earnings and expectations of a positive 2018 outlook could be two key reasons why its stock has outperformed in 1Q18.
Previously in 2017, Advance Auto Parts witnessed a massive drop of ~41.1%, which was much worse than the 19.4% positive return delivered by the S&P 500 benchmark last year.
Tesla (TSLA) released its 4Q17 earnings earlier this month. To learn more, read All You Need to Know about Tesla’s 4Q17 Earnings Event.
In this series, we’ll take a quick look at Wall Street analysts’ estimates for Advance Auto Parts’ 4Q17 earnings. We’ll also discuss analysts’ revenue and profit margin estimates. We’ll examine analysts’ recommendations for Advance Auto Parts’ stock before its fourth-quarter earnings event.