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Auto Parts Retailer Stocks Q3 In Review: Advance Auto Parts (NYSE:AAP) Vs Peers

As auto parts retailer stocks’ Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers, including Advance Auto Parts (NYSE:AAP) and its peers.

Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.

The 5 auto parts retailer stocks we track reported a mixed Q3; on average, revenues were in line with analyst consensus estimates Stocks have faced challenges as investors prioritize near-term cash flows, but auto parts retailer stocks held their ground better than others, with the share prices up 8% on average since the previous earnings results.

Weakest Q3: Advance Auto Parts (NYSE:AAP)

Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.

Advance Auto Parts reported revenues of $2.72 billion, up 2.9% year on year, topping analyst expectations by 1.6%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.

“Since joining Advance, I have partnered with the board and management team to move with speed in conducting a comprehensive review of the business,” said Shane O’Kelly, president and chief executive officer.

Advance Auto Parts Total Revenue

Advance Auto Parts Total Revenue

Advance Auto Parts delivered the weakest full-year guidance update of the whole group. The stock is up 14.6% since the results and currently trades at $66.96.

Read our full report on Advance Auto Parts here, it’s free.

Best Q3: O’Reilly (NASDAQ:ORLY)

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

O’Reilly reported revenues of $4.20 billion, up 10.7% year on year, outperforming analyst expectations by 2.9%. It was a solid quarter for the company, with a decent beat of analysts’ revenue estimates.

O'Reilly Total Revenue

O’Reilly Total Revenue

O’Reilly delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 17.5% since the results and currently trades at $1,029.33.

Is now the time to buy O’Reilly? Access our full analysis of the earnings results here, it’s free.

Monro (NASDAQ:MNRO)

Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Monro reported revenues of $317.7 million, down 5.2% year on year, falling short of analyst expectations by 2.2%. It was a slower quarter for the company, with a miss of analysts’ revenue estimates.

Monro had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 6.9% since the results and currently trades at $31.76.

Read our full analysis of Monro’s results here.

AutoZone (NYSE:AZO)

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

AutoZone reported revenues of $4.19 billion, up 5.1% year on year, inline with analyst expectations. It was a decent quarter for the company, with a beat of analysts’ EPS estimates.

The stock is up 5.2% since the results and currently trades at $2,800.

Read our full, actionable report on AutoZone here, it’s free.

Genuine Parts (NYSE:GPC)

Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.

Genuine Parts reported revenues of $5.82 billion, up 2.6% year on year, falling short of analyst expectations by 1.5%. It was a mixed quarter for the company, with a decent beat of analysts’ gross margin estimates but a miss of analysts’ revenue estimates.

The stock is down 4% since the results and currently trades at $142.74.

Read our full, actionable report on Genuine Parts here, it’s free.

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The author has no position in any of the stocks mentioned

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