Overview

* Advance Auto Parts ( AAP ) Q2 sales of $2.01 bln, just ahead of analyst expectations, per LSEG data

* Adjusted EPS of $0.69 for Q2 beats analyst estimates, per LSEG data

* Co completed $1.95 bln senior notes offering, entered new $1.0 bln credit facility

Outlook

* Advance Auto Parts ( AAP ) reaffirms full-year 2025 sales guidance of $8.4 bln to $8.6 bln

* Company revises full-year adjusted EPS to $1.20-$2.20 due to higher interest expense

* Advance Auto Parts ( AAP ) expects 2025 comparable store sales growth of 0.5% to 1.5%

* Company plans to open 30 new stores and 10 market hubs in 2025

Result Drivers

* PRO BUSINESS GROWTH - Co attributes comparable sales increase to growth in Pro business, per CEO Shane O'Kelly

* FOOTPRINT OPTIMIZATION - Margin expansion driven by savings from footprint optimization activity completed in March

* STORE REDUCTION - Reduced SG&A expenses due to operating fewer stores compared to last year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $2.01 $1.98

bln bln (20

Analysts

)

Q2 Beat $0.69 $0.57

Adjusted (22

EPS Analysts

)

Q2 EPS $0.25

Q2 Beat $61 mln $57.20

Adjusted mln (19

Operatin Analysts

g Income )

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 24 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

* Wall Street's median 12-month price target for Advance Auto Parts Inc ( AAP ) is $50.00, about 23.6% below its August 13 closing price of $61.81

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)