Advance Auto Parts Stock Skids After Earnings Beat. Here’s Why.

The automotive parts company lowered its forecast for 2025 adjusted per-share earnings (Dreamstime)

Shares of Advance Auto Parts were falling sharply Thursday after the company beat earnings expectations but issued a gloomy forecast for the rest of the year.

Advance Auto posted adjusted earnings of 69 cents a share for its second quarter, surpassing Wall Street’s call for 56 cents, according to FactSet. Comparable-store sales rose 0.1% from the prior year, in line with consensus estimates.

But the company lowered its forecast for 2025 adjusted per-share earnings to between $1.20 and $2.20, down from a range of $1.50 to $2.50. The revision accounted for higher net interest expense related to the company’s offering of $1.95 billion in senior notes last month.

Advance Auto stock was tumbling 15% to $52.45 on Thursday.

Shareholders have experienced wild swings after the company’s earnings reports. Thursday would mark the third consecutive double-digit percentage move after a quarterly print. Shares surged 57% in May when the company’s financial results beat expectations and management reaffirmed its full-year guidance in the face of tariffs.

The drop Thursday was another setback for a company that is trying to rebound after years of falling behind peers like AutoZone and O’Reilly Automotive , both of which have outperformed the market over the last three years. Advance Auto has shed nearly three-quarters of its value in that same period.

AutoZone was down 0.5% on Thursday and O’Reilly Automotive slipped 0.4%.

Write to Nate Wolf at nate.wolf@barrons.com