Advance Auto Parts (NYSE: AAP) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Wednesday, August 10. Advance Auto Parts is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items mainly operating within the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Advance Auto Parts with 12 of 19 analysts rating it hold. Analysts don't like Advance Auto Parts as much as competitor Pep Boys - Manny, Moe & Jack overall. Four out of seven analysts rate Pep Boys - Manny, Moe & Jack a buy compared to six of 19 for Advance Auto Parts. While analysts still rate the stock a Hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $1.5 billion in revenue this quarter. That would represent a rise of 5.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.39 per share. Estimates range from $1.32 to $1.47.

What our community says:
 CAPS All Stars are solidly backing the stock with 91.3% assigning it an "outperform" rating. The community at large concurs with the All Stars with 90.3% granting it a rating of "outperform." Fools are keen on Advance Auto Parts, though the message boards have been quiet lately with only 74 posts in the past 30 days. Despite the majority sentiment in favor of Advance Auto Parts, the stock has a middling CAPS rating of three out of five stars.

Management:
 Advance Auto Parts' profit has risen year over year by an average of 26.7%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

50.5%

49.4%

50.3%

50.4%

Operating Margin

9.8%

6.6%

10.5%

12.1%

Net Margin

5.8%

3.8%

6.2%

7.1%

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