Advance Auto Parts Earnings Preview

Motley Fool Staff
Updated

Advance Auto Parts (NYS: AAP) came in under analysts' estimates last quarter,but now has a chance to fix things this quarter. The company will unveil its latest earnings Wednesday. Advance Auto Parts is a specialty retailer of automotive aftermarket parts, accessories, batteries, and maintenance items mainly operating within the United States.

What analysts say:

What our community says:
CAPS All-Stars are solidly backing the stock with 91.3% assigning it an "outperform" rating. The community at large concurs with the All-Stars with 90.3% granting it a rating of "outperform." Fools are keen on Advance Auto Parts, though the message boards have been quiet lately with only 74 posts in the past 30 days. Despite the majority sentiment in favor of Advance Auto Parts, the stock has a middling CAPS rating of three out of five stars.

Management:
Advance Auto Parts' profit has risen year over year by an average of 26.7%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

50.5%

49.4%

50.3%

50.4%

Operating Margin

9.8%

6.6%

10.5%

12.1%

Net Margin

5.8%

3.8%

6.2%

7.1%

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At the time thisarticle was published

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