Advance Auto Parts, Inc. AAP reported an adjusted loss of $1.18 per share for the fourth quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.38. The company had incurred an adjusted loss of 59 cents in the year-ago quarter.

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Advance Auto generated net revenues of $2 billion, which topped the Zacks Consensus Estimate of $1.93 billion. Comparable store sales decreased 0.9% year over year. We projected a decline of 2% for the same. The top line decreased from $2.46 billion generated in the year-ago quarter.

Advance Auto Parts, Inc. Price, Consensus and EPS Surprise

Advance Auto Parts, Inc. price-consensus-eps-surprise-chart | Advance Auto Parts, Inc. Quote

Gross profit decreased 57.6% to $347.1 million (17.4% of net sales). AAP reported operating loss of $820 million. SG&A expenses totaled $1.2 billion for fourth-quarter 2024, up 35.5% year over year.

The company had cash and cash equivalents of $1.87 billion as of Dec. 28, 2024, compared with $488 million as of Dec. 30, 2023. Total long-term debt was $1.79 billion as of Dec. 28, 2024.

In 2024, net cash provided by operating activities and negative free cash flow totaled $140.5 million and $40.3 million, respectively.

As of Dec. 28, 2024, the company operated 4,788 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 934 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.

On Feb. 11, 2025, AAP declared a dividend of 25 cents a share to be paid on April 25, 2025, to shareholders as of April 11, 2025.

AAP Reiterates 2025 Guidance

Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are projected in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million.

Net sales and adjusted operating income margin for 2027 are expected to be $9 billion and 7%, respectively. AAP targets to open 50-70 stores in 2027, with comps envisioned to grow at a positive low-single-digit percentage.

Advance Auto’s Zacks Rank & Key Picks

AAP carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 20 cents and 40 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.

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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report

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Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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