AutoZone (NYSE:AZO) Releases Earnings Results, Beats Expectations By $1.85 EPS

AutoZone (NYSE:AZO) issued its quarterly earnings data on Tuesday. The company reported $38.07 earnings per share for the quarter, topping analysts’ consensus estimates of $36.22 by $1.85, FiscalAI reports. AutoZone had a net margin of 12.47% and a negative return on equity of 72.31%. The business had revenue of $4.84 billion during the quarter, compared to analysts’ expectations of $4.86 billion. During the same period in the previous year, the company earned $35.36 earnings per share. AutoZone’s revenue for the quarter was up 8.4% on a year-over-year basis.

Here are the key takeaways from AutoZone’s conference call:

• AutoZone posted strong Q3 results with total sales up 8.4% to $4.8 billion and EPS up 7.7%, marking the company’s biggest sales increase in more than three years.
• Domestic commercial remains the growth engine, with sales up 10.4% and management emphasizing double-digit growth in both national accounts and “up-and-down-the-street” customers as the business continues to gain share.
• Store expansion and Mega Hub rollout are accelerating; AutoZone opened 82 stores globally in the quarter and plans about 365 for the year, while new Mega Hubs are outperforming expectations and supporting both DIY and commercial sales.
• Weather softened late-quarter DIY traffic and comps, with management saying cooler-than-normal conditions hurt heat-related categories like air conditioning, starting, and charging, though they still expect a normal or hotter summer ahead.
• Cash generation and shareholder returns remain strong, with $455 million in quarterly free cash flow, leverage at 2.5x EBITDA, and $586 million of share repurchases in the quarter; the company also reiterated confidence in continued investment and returns on capital.

AutoZone Price Performance

NYSE AZO opened at $3,030.35 on Thursday. The firm has a market capitalization of $49.94 billion, a price-to-earnings ratio of 21.23, a P/E/G ratio of 1.58 and a beta of 0.43. The company’s fifty day moving average is $3,438.99 and its two-hundred day moving average is $3,575.13. AutoZone has a 52-week low of $2,986.01 and a 52-week high of $4,388.11.

Wall Street Analyst Weigh In

AZO has been the subject of a number of analyst reports. Truist Financial set a $3,700.00 price objective on shares of AutoZone in a research note on Wednesday. Guggenheim reduced their price objective on shares of AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating for the company in a research note on Wednesday. Roth Mkm reduced their price objective on shares of AutoZone from $4,526.00 to $4,023.00 and set a “buy” rating for the company in a research note on Wednesday. Robert W. Baird reduced their price objective on shares of AutoZone from $3,900.00 to $3,600.00 and set a “neutral” rating for the company in a research note on Wednesday. Finally, JPMorgan Chase & Co. reduced their price objective on shares of AutoZone from $4,300.00 to $3,850.00 and set an “overweight” rating for the company in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $4,070.83.

Insider Transactions at AutoZone

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of the firm’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total value of $173,936.00. Following the sale, the director directly owned 4,837 shares in the company, valued at $16,826,568.64. This trade represents a 1.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 2.60% of the stock is owned by corporate insiders.

Institutional Trading of AutoZone

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Turning Point Benefit Group Inc. acquired a new stake in AutoZone in the 3rd quarter worth $25,000. Transamerica Financial Advisors LLC raised its stake in shares of AutoZone by 100.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company’s stock valued at $28,000 after buying an additional 4 shares in the last quarter. Newbridge Financial Services Group Inc. acquired a new position in shares of AutoZone in the 3rd quarter valued at $43,000. Jessup Wealth Management Inc acquired a new position in shares of AutoZone in the 4th quarter valued at $44,000. Finally, Darwin Wealth Management LLC acquired a new position in shares of AutoZone in the 2nd quarter valued at $56,000. 92.74% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone beat quarterly EPS estimates, reporting $38.07 versus consensus around $36.22, showing the core business remains profitable. AutoZone stock on pace for worst trading day since March 2020, despite retailer beating Wall Street estimates
• Positive Sentiment: Net sales rose 8.4% year over year, and commercial sales grew strongly, supporting the view that demand for auto parts remains healthy. AutoZone Q3 Earnings Beat Estimates on Strong Sales Growth
• Positive Sentiment: Management said it still expects to open 355 to 365 new locations this fiscal year, signaling continued expansion. AutoZone Fell Short of Wall Street’s Expectations. Should You Buy the Dip?
• Neutral Sentiment: Several Wall Street firms kept bullish or positive ratings, but many lowered price targets after the report, reflecting optimism about the business but caution on near-term valuation. Are Wall Street Analysts Predicting AutoZone Stock Will Climb or Sink?
• Negative Sentiment: Revenue came in slightly below expectations, which is weighing on sentiment despite the earnings beat. AutoZone shares slide on quarterly revenue miss
• Negative Sentiment: Gross margin fell 57 basis points, and international growth slowed, adding to concerns about profitability and momentum. AutoZone Stock Is Plummeting Despite Strong Earnings. Here’s Why.

AutoZone Company Profile

AutoZone, Inc (NYSE: AZO) is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.

AutoZone serves both do?it?yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.