Advance Auto Parts Raises Guidance After Q3 Beat

Advance Auto Parts reported stronger-than-expected Q3 results, with adjusted EPS of $0.92 beating consensus (~$0.74–$0.77) and revenue of about $2.04 billion; comparable-store sales rose roughly 3%. The company narrowed its net loss to $1 million, and CEO Shane O’Kelly called it Advance’s strongest quarterly performance in over two years. Management tightened full-year adjusted EPS guidance to $1.75–$1.85 (midpoint ~$1.80), raised revenue guidance to $8.55–$8.60 billion, and is targeting roughly 200 basis points of margin expansion in the first year of its turnaround. Operational improvements included an adjusted gross profit margin increase and roughly 1.1% operating margin and a free cash flow margin around 9.9%, even as the company’s store count declined year-over-year. Shares jumped double digits in premarket trading and analysts said the results beat estimates across several metrics.