Advance Auto Parts Inc. (NYSE:AAP) stock rose Thursday after reporting its third-quarter results.
The company posted adjusted earnings of 92 cents per share, reversing a loss of 5 cents a year earlier and topping Wall Street’s forecast of 75 cents for the third quarter.
The company reported quarterly revenue of $2.04 billion, narrowly topping the $2.03 billion consensus estimate but down 5.2% from $2.15 billion a year earlier. Comparable store sales for the third quarter of 2025 rose 3%.
Also Read: Advance Auto Parts Turnaround Plan Is ‘Progressing’ Despite Weak Guidance: Analyst
Adjusted gross profit margin for the quarter improved to 44.8% from 42.3% a year ago, while adjusted operating income margin rose to 4.4% from 0.7%.
During the forty weeks ended October 4, 2025, Advance Auto Parts opened 26 stores and closed 517, bringing its total store count to 4,297.
Capital Allocation
The company declared a regular cash dividend of 25 cents per share to be paid on January 23, 2026, to all common stockholders of record as of January 9, 2026.
The company’s cash and cash equivalents totaled $3.17 billion as of October 4, 2025.
Outlook
AAP narrowed its full-year 2025 adjusted earnings per share guidance to $1.75-$1.85, up from a previous range of $1.20-$2.20, slightly above the $1.72 per share analyst estimate.
The company also raised its full-year sales forecast to $8.55 billion-$8.60 billion from $8.40 billion-$8.60 billion, compared with analysts’ consensus of $8.58 billion.
The company expects its adjusted operating income margin from continuing operations to range between 2.4% and 2.6%. Full-year 2025 guidance assumes that current tariffs will remain in effect through the end of the year.
CEO Commentary
Shane O’Kelly, president and chief executive officer, said, “We delivered our strongest quarterly performance in over two years, thanks to the team’s determination, commitment to our turnaround objectives, and their dedication to serving our customers. Our comparable sales performance was led by growth in the Pro channel. The DIY channel also delivered positive comparable sales growth in the quarter.”
“We continue to make progress on our strategic priorities, and based on our updated guidance we are on track to deliver approximately 200 basis points of annual margin expansion in the first year of our turnaround. Our initiatives are geared toward delivering sustained, profitable growth and we remain committed to advancing our strategic priorities to create shareholder value over the long term.”
Price Action: AAP shares were trading higher by 8.83% to $60.00 premarket at last check Thursday.
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