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What Analysts Expect for Advance Auto Parts’ Q2 2018 Results

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Aug. 9 2018, Published 11:40 a.m. ET

Advance Auto Parts’ Q1 2018 recap

In the first quarter (ended April 21), Advance Auto Parts’ (AAP) adjusted EPS rose ~31% YoY (year-over-year) to $2.10 from $1.60, beating analysts’ estimate of $1.97. Despite the earnings beat, AAP’s weaker revenue and comp sales worried investors. In the fourth quarter of 2017, Advance Auto Parts’ adjusted EPS fell ~23% YoY. 

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Q2 2018 earnings estimates

Analysts expect AAP’s positive earnings trend to continue in the second quarter as its sales recover and it focuses on improving profitability. They foresee its EPS rising 17% YoY to $1.85 from $1.58.

Legacy auto manufacturers (FXD) Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) reported their earnings results last month. All of them revised their 2018 outlook, partly due to prices rising for raw materials such as steel and aluminum. This downward revision impacted investor sentiment and drove these companies’ stocks lower. On the positive side, automakers have continued to benefit from solid US demand for utility vehicles and trucks. Continue to the next part to learn what analysts expect for AAP’s second-quarter revenue.

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