Can Advance Auto Parts Meet These Numbers?

Advance Auto Parts (NYSE: AAP  ) is expected to report Q2 earnings on Aug. 9. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Advance Auto Parts' revenues will improve 0.2% and EPS will drop -3.4%.

The average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $1.41.

Revenue details
Last quarter, Advance Auto Parts notched revenue of $1.96 billion. GAAP reported sales were 3.1% higher than the prior-year quarter's $1.90 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.79. GAAP EPS of $1.79 for Q1 were 33% higher than the prior-year quarter's $1.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 50.1%, 40 basis points worse than the prior-year quarter. Operating margin was 11.5%, 170 basis points better than the prior-year quarter. Net margin was 6.8%, 100 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $6.34 billion. The average EPS estimate is $5.69.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 239 members out of 262 rating the stock outperform, and 23 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Advance Auto Parts a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advance Auto Parts is outperform, with an average price target of $94.47.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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