The auto-parts retailer posts better-than-expected earnings and sales for the fourth quarter. ...

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Advance Auto Parts swung to a profit but had a decline in revenue during its fourth quarter, as the company continued to close stores as part of its earlier restructuring plan. ...

Exhibit 99.1 Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results; Releases Full Year 2026 Guidance Highlighting Continued Progress on Strategic Plan All comparisons are based on continuing operations for the same time period in the prior year. The Company calculates comparable store sales based on the change in store sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently ...

Core Insights - Advance Auto Parts reported its fourth quarter and full year 2025 results, highlighting significant financial performance and strategic initiatives [1] Financial Performance - The company achieved a total revenue of $10.5 billion for the full year 2025, representing a 5% increase compared to the previous year [1] - In the fourth quarter alone, revenue reached $2.8 billion, marking a 3% year-over-year growth [1] - Gross profit for the year was reported at $3.5 billion, with a gross margin of 33.3%, slightly up from 32.9% in 2024 [1] Strategic Initiatives - The company emphasized its commitment to enhancing customer experience through digital transformation and improved supply chain efficiency [1] - Advance Auto Parts plans to open 50 new stores in 2026, aiming to expand its market presence and accessibility [1] - The company is investing in technology to streamline operations and improve inventory management, which is expected to drive future growth [1]

The CNN Money Fear and Greed index showed further decline in the overall market sentiment, while the index moved to the “Fear” zone on Thursday.U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling 2% during the session.On the economic data front, U.S. initial jobless claims fell by 5,000 from the previous week to 227,000 in the first week of February, compared to market estimates of 222,000.Most sectors on the S&P 500 closed on a negative note, with information technology, energy and fin ...

Group 1 - U.S. stock futures are trading lower this morning on Friday, indicating a potential decline in market sentiment [1] - Certain stocks are expected to attract investor focus today, suggesting potential investment opportunities [1] - The article includes a reference to premarket coverage, which may provide additional insights into market movements [1]

Core Viewpoint - Advance Auto Parts (AAP) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report, supported by a strong history of performance in this regard [1]. Earnings Performance - The company has consistently surpassed earnings estimates, with an average surprise of 20.64% over the last two quarters [2]. - In the last reported quarter, AAP achieved earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, resulting in a surprise of 24.32% [3]. - For the previous quarter, AAP was expected to report earnings of $0.59 per share but delivered $0.69 per share, yielding a surprise of 16.95% [3]. Earnings Estimates and Predictions - Recent estimates for AAP have been trending upward, indicating positive sentiment among analysts [6]. - The Zacks Earnings ESP (Expected Surprise Prediction) for AAP is currently positive at +1.22%, suggesting bullish expectations for near-term earnings [8]. - AAP's Zacks Rank is 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The next earnings report for AAP is anticipated to be released on February 13, 2026 [8].

Core Insights - The fourth-quarter earnings season for the Auto-Tires-Trucks sector has shown mixed results, with Ford disappointing, General Motors exceeding estimates for the 14th consecutive quarter, and Tesla surprising with a significant capex plan exceeding $20 billion for the year [1] Industry Overview - The U.S. auto industry experienced a slowdown in the fourth quarter, with vehicle sales dropping to an annualized pace of 15.6 million units from 16.4 million in the third quarter, marking the weakest period of the year [3] - Tariffs on imported vehicles and components have increased costs for automakers, contributing to profitability pressures, while inflation has affected both manufacturers and consumers [4] - The electric vehicle market saw a significant decline in demand, with EV sales falling to 234,000 units in the fourth quarter, down 46% sequentially and 36% year-over-year [5] Company-Specific Insights Advance Auto Parts (AAP) - AAP is expected to report earnings with a consensus estimate of 43 cents per share, indicating a 136% year-over-year growth, while revenues are projected to decline by 2% to $1.95 billion [10] - The company has an Earnings ESP of -2.14% and a Zacks Rank of 3, suggesting uncertainty regarding an earnings beat [7] - AAP's comps growth is estimated at 2.23%, compared to a decline of 1% in the same quarter of 2024 [8] Magna International (MGA) - MGA is predicted to report earnings with a consensus estimate of $1.81 per share, reflecting a 7% year-over-year growth, while revenues are expected to decline by 1% to $10.5 billion [13] - The company has an Earnings ESP of +3.87% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [11] - The Power & Vision segment is anticipated to contribute positively, with revenues expected to rise to $3,796 million from $3,786 million in the previous year [12] Dauch Corporation (DCH) - DCH is forecasted to report a loss of 7 cents per share, representing a 17% year-over-year deterioration, while revenues are expected to grow by 2% to $1.4 billion [16] - The company has an Earnings ESP of +124.47% but a Zacks Rank of 4, indicating challenges in achieving an earnings beat [15] - Management has highlighted several headwinds for the fourth quarter, including normal seasonality and production volatility [15]

Core Insights - Advance Auto Parts (NYSE: AAP) is set to release its fourth-quarter earnings soon, with the stock experiencing a significant rise of 5.4% today and an impressive increase of 51.9% in 2026 alone [1][2]. Company Performance - The company is identified as a deep value stock for 2026, with operational metrics lagging behind competitors like O'Reilly Automotive and AutoZone. Improvement in these metrics could lead to a substantial increase in stock price [2]. - Advance Auto Parts has a poor track record in the auto parts retailing business, which is critical for its success [4]. Management Strategy - CEO Shane O'Kelly is implementing a comprehensive restructuring plan, which includes closing over 700 locations and opening new stores in leading market areas. This strategy aims to enhance the availability of stock-keeping units (SKUs) and improve same-day delivery [5]. Market Conditions - Investors are hoping for improved profit margins and positive guidance for 2026 in the upcoming earnings report. However, the overall market for auto parts is weak, as indicated by companies like 3M and RPM International reporting weak sales [6].