AAP targets growth with new stores, a unified supply chain and an updated operating model despite debt and DIY pressure.
AAP's Q3 earnings top forecasts with stronger sales, while the company narrows its 2025 sales outlook.
Advance Auto Parts, Inc. ( AAP ) Q3 2025 Earnings Call October 30, 2025 8:00 AM EDT Company Participants Lavesh Hemnani Shane OKelly - President, CEO & Director Ryan Grimsland - Executive VP & CFO Conference Call Participants Simeon Gutman - Morgan Stanley, Research Division Christopher Horvers - JPMorgan Chase & Co, Research Division Bret Jordan - Jefferies LLC, Research Division Steven Forbes - Guggenheim Securities, LLC, Research Division Michael Lasser - UBS Investment Bank, Research Division Michael Baker - D.A. Davidson & Co., Research Division Presentation Operator Hello, and welcome, everyone, to the Advance Auto Parts Third Quarter 2025 Earnings Conference Call.
While the top- and bottom-line numbers for Advance Auto Parts (AAP) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
The automotive supplier posts 3% same-store sales growth for the third quarter.
While the Zacks Auto Retail Parts industry is ranked unfavorably, stocks like ORLY and AAP are still worth watching.
One of the main drivers of stock price performance is the underlying earnings per share (EPS) growth for any business's future. With this in mind, one of the simplest ways investors can land on a good upside opportunity is to find companies that trade well below their relative highs but can still fill those price gaps based on where future EPS growth may be headed.
As tariff negotiations continue, most investors will likely refresh their Twitter feeds daily to see what President Trump is shifting to next. While this is great for traders who make up most of the stock market's caffeine intake, some simply don't have the time (or stomach) to handle this market roller coaster.
Investors need to pay close attention to AAP stock based on the movements in the options market lately.
Advance Auto beat second-quarter earnings estimates and keep its 2025 outlook intact despite revenue and profit declines.
Advance Auto Parts, Inc. has stabilized sales, but margin expansion is challenged by tariffs, restructuring costs, and ongoing store investments. Recent debt issuance and a strong cash position support AAP liquidity, but free cash flow remains negative due to inventory and capex needs. Management's aggressive 2027 margin and earnings targets appear optimistic given operational headwinds and required modernization spending.
Advance Auto Parts (AAP) shares shifted into reverse Thursday when the auto parts retailer lowered its profit guidance as it took on a new $1 billion loan.