How’s Advance Auto Parts Stock Faring before Its 4Q17 Results?



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.

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Peer comparison

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.

Series overview

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.


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