Earnings Preview: Advance Auto Parts

Advance Auto Parts (AAP) is expected to report Q3 earnings after market close Wednesday, October 29, with a conference call scheduled for Thursday, October 30 at 10:00 am ET.

Guidance

Analysts are expecting a profit of 57c on revenue of $1.19B. The consensus range for EPS is flat at 57c, with a revenue range of $1.18B to $1.22B, according to First Call. In Q2, the company reported EPS 79c as compared to consensus 72c, and Q2 revenue $1.24B compared to consensus $1.21B. On October 7 the company said they see Q3 revenues up approximately 2.6% Possible positive drivers for the quarter include new store openings and increasing commercial sales. Negative issues for this earnings period include the slowdown in the economy and higher fuel prices, especially at the beginning of the quarter.

Analyst Views

On October 1 Advance Auto Parts was upgraded to Neutral from Sell at UBS based on valuation. On October 8 Gabelli said the company's valuation was attractive as the firm thinks that the company can raise its operating margins by cutting costs. Gabelli maintained their Buy rating.