As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at auto parts retailer stocks, starting with Advance Auto Parts (NYSE:AAP).
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 slower Q1. As a group, revenues beat analysts’ consensus estimates by 1%.
Luckily, auto parts retailer stocks have performed well with share prices up 18.3% on average since the latest earnings results.
Best Q1: 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 $2.58 billion, down 6.8% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
Advance Auto Parts pulled off the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 57.8% since reporting and currently trades at $49.35.