As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at auto parts retailer stocks, starting with Advance Auto Parts (NYSE:AAP).
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 Q1. As a group, revenues beat analysts’ consensus estimates by 1%.
Luckily, auto parts retailer stocks have performed well with share prices up 18.3% on average since the latest earnings results.
Best Q1: 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 $2.58 billion, down 6.8% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
Advance Auto Parts pulled off the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 57.8% since reporting and currently trades at $49.35.
Is now the time to buy Advance Auto Parts? Access our full analysis of the earnings results here, it’s free.
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 $5.87 billion, up 1.4% year on year, outperforming analysts’ expectations by 0.5%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.
The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $126.99.
Is now the time to buy Genuine Parts? Access our full analysis of the earnings results here, it’s free.
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 $295 million, down 4.9% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
Interestingly, the stock is up 22.1% since the results and currently trades at $15.59.
Read our full analysis of Monro’s results here.
AutoZone (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 $4.46 billion, up 5.4% year on year. This number surpassed analysts’ expectations by 1.1%. However, it was a slower quarter as it recorded a miss of analysts’ EBITDA and gross margin estimates.
AutoZone scored the fastest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $3,750.
Read our full, actionable report on AutoZone here, it’s free.
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 $4.14 billion, up 4% year on year. This print missed analysts’ expectations by 0.9%. It was a slower quarter as it also logged a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
O'Reilly had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $1,374.
Read our full, actionable report on O'Reilly here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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