Advance Auto Parts Surges on Earnings Beat

Shares of Advance Auto Parts (AAP) soared 24% after the company posted better-than-expected third-quarter results, providing a boost to the auto retail sector.

Adjusted EPS: $0.92 vs. $0.75 expected (LSEG consensus)
Revenue: $2.04 billion vs. $2.02 billion expected
The solid performance reflected improving same-store sales, cost controls, and early benefits from strategic turnaround initiatives.

Operational Improvements Noted

Management cited progress in inventory management, pricing discipline, and supply chain efficiency, which helped drive profitability.
The company’s restructuring and focus on its core retail and professional customer base are beginning to show positive momentum after a challenging 2024.

Sector Impact

The upbeat results and stock rally boosted sentiment across the automotive aftermarket and parts retail industry, suggesting resilient consumer demand for maintenance and repair spending despite economic uncertainty.