These Analysts Slash Their Forecasts On Advance Auto Parts After Q3 Results
Portfolio Pulse from Lisa Levin
Advance Auto Parts Inc. (NYSE:AAP) reported a loss in Q3 FY23 with sales of $2.719 billion, slightly above estimates, but an EPS loss of 82 cents. The company reduced its FY23 EPS outlook significantly from the prior view of $4.50-$5.10 to $1.40-$1.80, well below the $4.65 estimate. Revenue outlook was also revised to $11.250-$11.300 billion. Following the results, AAP shares dropped 7.3%. Analysts from B of A Securities, Goldman Sachs, Wedbush, and JP Morgan have subsequently lowered their price targets on AAP, with B of A Securities also downgrading the stock to Underperform.
November 16, 2023 | 5:02 pm
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Advance Auto Parts reported a Q3 loss and lowered FY23 EPS and revenue outlooks, leading to a 7.3% stock price decline and multiple analysts reducing price targets and ratings.
The negative Q3 results and reduced FY23 outlook are likely to impact investor confidence and could lead to a continued short-term decline in stock price. The downgrade by B of A Securities and reduced price targets by other analysts further support a negative short-term outlook for AAP.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100