Looking back on auto parts retailer stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Advance Auto Parts (NYSE:AAP) and its peers.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, auto parts retailer stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Advance Auto Parts (NYSE:AAP) Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.68 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
“Our team delivered positive comparable sales growth while navigating a challenging demand environment during the second quarter. I would like to thank the team for their hard work and dedication to serving our customers,” said Shane O’Kelly, president and chief executive officer.
Advance Auto Parts scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 5% since reporting and currently trades at $27.36.
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Best Q2: Monro (NASDAQ:MNRO) Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $293.2 million, down 10.3% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates.
The market seems happy with the results as the stock is up 5% since reporting. It currently trades at $27.36.
Weakest Q2: Genuine Parts (NYSE:GPC) Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.96 billion, flat year on year, falling short of analysts’ expectations by 1.2%. It was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
Interestingly, the stock is up 3.1% since the results and currently trades at $142.71.
O'Reilly (NASDAQ:ORLY) Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.27 billion, up 5% year on year, falling short of analysts’ expectations by 1.1%. Revenue aside, it was a weaker quarter for the company with underwhelming earnings guidance for the full year.
O'Reilly achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 7.1% since reporting and currently trades at $1,128.
AutoZone (NYSE:NYSE:AZO) Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $4.24 billion, up 3.5% year on year, falling short of analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates .
AutoZone had the weakest performance against analyst estimates among its peers. The stock is up 8.7% since reporting and currently trades at $3,182.
This content was originally published on Stock Story
