Advance Auto Parts (AAP) Reports Earnings Tomorrow: What To Expect

Auto parts and accessories retailer Advance Auto Parts (NYSE:AAP) will be reporting earnings tomorrow before market hours. Here's what to look for.

Advance Auto Parts met analysts' revenue expectations last quarter, reporting revenues of $2.46 billion, flat year on year. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. On the other hand, Advance Auto Parts provided optimistic full-year earnings forecast, which blew past analysts' expectations.

Is Advance Auto Parts a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Advance Auto Parts's revenue to be flat year on year at $3.43 billion, slowing from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advance Auto Parts has missed Wall Street's revenue estimates four times over the last two years.

Looking at Advance Auto Parts's peers in the auto parts retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. O'Reilly delivered year-on-year revenue growth of 7.2%, meeting analysts' expectations, and Genuine Parts reported flat revenue, falling short of estimates by 1%. O'Reilly traded down 3.3% following the results while Genuine Parts was up 12.7%.

Read our full analysis of O'Reilly's results here and Genuine Parts's results here.

There has been positive sentiment among investors in the auto parts retailer segment, with share prices up 6.7% on average over the last month. Advance Auto Parts is down 7.8% during the same time and is heading into earnings with an average analyst price target of $65.1 (compared to the current share price of $69.51).

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