Advance Auto Parts Inc. (AAP) posted a surprisingly strong fourth quarter on Friday, but investors weren't exactly throwing a parade. The auto parts retailer's shares stayed essentially flat despite crushing earnings expectations—which tells you everything about how Wall Street feels about the guidance.

The Numbers That Matter

Advance Auto Parts delivered adjusted earnings of 86 cents per share, more than doubling the analyst consensus of 42 cents. That's not just a beat—that's blowing past expectations.

Revenue came in at $1.973 billion, topping the Street's $1.952 billion estimate. Worth noting: an extra week in the quarter added roughly $132 million to those sales figures. Comparable sales grew 1.1%, and the company said sales momentum actually turned positive over the final eight weeks of the period.

The year-ago quarter included about $74 million from stores that got shuttered in early 2025 as part of the company's optimization efforts under its 2024 Restructuring Plan.

The profitability picture improved dramatically. Adjusted gross profit hit $900 million (44.2% of sales), up from $800 million (39.0%) a year earlier. Operating income swung to a positive $73 million from a loss of $99 million in the prior-year quarter. The company closed out Q4 with a healthy $3.123 billion in cash and equivalents.

Looking Ahead

Here's where things get tricky. Advance Auto expects fiscal 2026 adjusted earnings between $2.40 and $3.10 per share, with the midpoint below the $2.66 analyst estimate. Sales guidance of $8.485 billion to $8.575 billion also trails the Street's $8.668 billion expectation.

Shares were down a modest 0.11% at $58.15 on Friday—basically unchanged despite the solid quarter.