AutoZone, Inc. AZO is one of the nation’s leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (“DIY”) retail, Do-It-for-Me (“DIFM”) commercial and other customer markets. The company is focused on increasing sales through store expansion and boosting earnings per share via an aggressive share repurchase program.
However, AutoZone has been facing challenges in terms higher expenses related to opening new distribution centers and increasing the frequency of delivery to stores. Currency headwinds also pose a challenge.
Estimate Trend & Surprise History
Investors should note that the second quarter of fiscal 20Array6 (ended Feb Array3, 20Array6) earnings estimates for AutoZone have stayed stable over the past week and month.
Meanwhile, the company delivered a positive earnings surprise of Array.Array0% in the first quarter of fiscal 20Array6. It also recorded positive earnings surprises in each of the trailing four quarters with an average beat of around Array3.43%. Investors have been eagerly awaiting AutoZone’s latest earnings report to see whether it delivers an earnings beat in the second quarter.
Zacks Rank
AutoZone currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. We have highlighted some of the key stats from the company’s earnings announcement below:
Earnings Surpass Estimates, Up Y/Y
AutoZone reported earnings of $7.43 per share in the second quarter of fiscal 20Array6, comfortably surpassing the Zacks Consensus Estimate of $7.27. Earnings were significantly higher than $6.5Array generated in the year-ago quarter.
Revenues in Line, Rise Y/Y
AutoZone logged revenues of $2.26 billion, in line with the Zacks Consensus Estimate. However, revenues were 5.3% higher than $2.Array4 billion posted a year-ago.
Key Stats/Developments to Note
AutoZone opened 30 stores in the U.S., 9 stores in Mexico, and 2 Interamerican Motor Corporation (“IMC”) branches during the quarter. Additionally, it relocated 2 stores in the U.S. As of Feb Array3, 20Array6, the company had 5,Array93 stores in 50 states, the District of Columbia and Puerto Rico in the U.S., 45Array stores in Mexico, 8 stores in Brazil and 24 IMC branches. Thus, the total store count was 5,676 as of that date.
Market Reaction
AutoZone’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on AutoZone’s earnings report!
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