Advance Auto Parts (NYSE:AAP) shares surged more than 10% in premarket trading on Thursday, after the auto parts retailer posted better-than-expected third-quarter results and tightened its full-year guidance.
The company reported earnings of $0.92 per share, topping analyst expectations of $0.77. Revenue totaled $2 billion, roughly in line with the $2.02 billion consensus estimate. Comparable store sales increased 3%, marking the company’s best quarterly growth in more than two years.
“We delivered our strongest quarterly performance in over two years, thanks to the team’s determination, commitment to our turnaround objectives, and their dedication to serving our customers,” said Shane O’Kelly, President and CEO of Advance Auto Parts.
O’Kelly added that both major business channels contributed to the improvement.
“Our comparable sales performance was led by growth in the Pro channel. The DIY channel also delivered positive comparable sales growth in the quarter. We continue to make progress on our strategic priorities, and based on our updated guidance we are on track to deliver approximately 200-basis points of annual margin expansion in the first year of our turnaround.”
Reflecting confidence in its ongoing recovery, the company narrowed its full-year 2025 earnings guidance to a range of $1.75 to $1.85 per share, up from the prior $1.20 to $2.20 range, and slightly above the $1.73 analyst forecast.
Advance Auto Parts also raised its full-year revenue projection to between $8.55 billion and $8.6 billion, from the previous outlook of $8.4 billion–$8.6 billion, aligning closely with market expectations of $8.57 billion.
In addition, management tightened its comparable sales growth forecast to 0.7%–1.3%, compared with the earlier 0.5%–1.5% range, signaling stable momentum as the company advances its turnaround plan.