AutoZone (NYSE:AZO) Announces Earnings Results, Beats Estimates By $1.85 EPS

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

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 Stock Down 9.0%

Shares of AZO opened at $3,100.16 on Wednesday. The business’s 50 day moving average price is $3,448.20 and its 200-day moving average price is $3,579.65. AutoZone has a 52 week low of $3,001.00 and a 52 week high of $4,388.11. The stock has a market cap of $51.08 billion, a P/E ratio of 21.72, a P/E/G ratio of 1.74 and a beta of 0.43.

Analyst Ratings Changes

A number of research analysts recently issued reports on AZO shares. UBS Group set a $4,800.00 price target on AutoZone in a report on Tuesday, March 3rd. Argus raised AutoZone from a “hold” rating to a “buy” rating and set a $4,325.00 price target on the stock in a research report on Monday, March 9th. Roth Mkm dropped their price target on AutoZone from $4,650.00 to $4,526.00 and set a “buy” rating on the stock in a research report on Wednesday, March 4th. Barclays boosted their price target on AutoZone from $3,800.00 to $3,900.00 and gave the stock an “overweight” rating in a research report on Wednesday, March 4th. Finally, Evercore reissued an “outperform” rating on shares of AutoZone in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $4,290.91.

Insider Activity at AutoZone

In other news, Director Earl G. Graves, Jr. sold 50 shares of the business’s stock in a transaction that occurred on Friday, April 10th. The stock was 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 of the company’s stock, valued at $16,826,568.64. The trade was a 1.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AutoZone

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC bought a new position in AutoZone in the 2nd quarter valued at approximately $356,000. Brighton Jones LLC lifted its position in AutoZone by 14.4% in the 4th quarter. Brighton Jones LLC now owns 111 shares of the company’s stock valued at $356,000 after acquiring an additional 14 shares in the last quarter. Meeder Asset Management Inc. lifted its position in AutoZone by 800.0% in the 4th quarter. Meeder Asset Management Inc. now owns 72 shares of the company’s stock valued at $244,000 after acquiring an additional 64 shares in the last quarter. Jacobi Capital Management LLC bought a new position in AutoZone in the 4th quarter valued at approximately $224,000. Finally, SmartHarvest Portfolios LLC bought a new position in AutoZone in the 4th quarter valued at approximately $217,000. 92.74% of the stock is owned by institutional investors.

AutoZone News Roundup

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone posted EPS of $38.07, topping Wall Street estimates, and sales still rose 8.4% year over year to about $4.84 billion, helped by strong domestic demand and same-store sales growth. Article Title
• Positive Sentiment: The company said repair demand remains resilient, with domestic same-store sales up and commercial growth continuing to support the business. Article Title
• Neutral Sentiment: Broader market sentiment was supportive, with the Nasdaq rallying and risk appetite improving, which may help cushion some of the selling pressure. Article Title
• Negative Sentiment: Revenue came in slightly below expectations, and multiple reports say the stock fell sharply as investors reacted to the miss despite the earnings beat. Article Title
• Negative Sentiment: Margins compressed, with commentary pointing to a non-cash LIFO headwind and weaker international performance, which raised concerns about profitability and ROIC. Article Title

About AutoZone

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.