Shares of Advance Auto Parts (AAP) surged 7.04% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results and an improved full-year outlook. The automotive parts retailer demonstrated resilience in a challenging market, beating earnings expectations and showing growth in key areas.
The company reported a comparable store sales growth of 3.0% for the quarter, surpassing analyst estimates of 2.2%. This growth was attributed to continued strength in the company's Professional (Pro) channel and positive performance in its Do-It-Yourself (DIY) segment. Despite a slight miss on revenue, which came in at $2.04 billion compared to the expected $2.02 billion, Advance Auto Parts posted an adjusted earnings per share of $0.92, significantly outperforming the Wall Street consensus of $0.75.
Investors were particularly encouraged by the company's revised full-year guidance. Advance Auto Parts now expects adjusted earnings from continuing operations of $1.75 to $1.85 per share, up from its previous forecast of $1.20 to $2.20 per share. The company also narrowed its full-year sales projection to a range of $8.55 billion to $8.60 billion, reflecting increased confidence in its performance for the remainder of the fiscal year. The improved outlook, coupled with the better-than-expected earnings, appears to be the primary driver behind the stock's pre-market rally.