• AutoZone’s 3rd Quarter net sales were $4.24 billion, increased by 3.5% from the previous year, but they failed to meet the estimated $4.29 billion.
• There was an increase of 3.5% in Auto Parts Sales, with earnings of $4.16 billion, but this was less than the estimated $4.21 billion.
• The Earnings Per Share (EPS) increased to $36.69 from $34.12 compared to the same period the previous year.
• Operating profit is reported at $900.2 million, which is an increase of 4.9% from the previous year, yet again falling short of the estimate of $914.4 million.
• Gross margin saw an increase from 52.5% to 53.5% year-on-year, exceeding the estimate of 53.1%.
• AutoZone revealed an increase in inventory per location by 5.1% to reported $0.85 million, this surpassed the estimated $0.82 million.
• The total location count is 7,236, showing a 0.6% increase from the previous quarter, barely surpassing the estimate of 7,235.
• AutoZone’s retail space expanded to 48.57 million square feet, which is an increase of 2.9% from the previous year, surpassing the estimated 48.49 million square feet.
• The company’s domestic sales performance was negatively impacted at the start of the quarter due to the delayed timing of tax refunds, additionally, the cooler weather, unusual for this period, in several areas of the country affected their results later in the quarter.
• The stock rating stands at 21 buys, 5 holds and 1 sell.
Autozone Inc on Smartkarma
Analyst coverage of Autozone Inc on Smartkarma showcases a positive sentiment towards the company’s growth prospects and financial performance. Value Investors Club‘s research emphasizes Autozone as an underappreciated franchise with strong potential for risk-adjusted returns. Highlighting its position as the largest auto parts retailer by revenue with a broad presence in the U.S. and internationally, the analysis applauds Autozone’s focus on higher-margin sales and resilient business model.
Similarly, insights from Baptista Research shed light on AutoZone’s recent achievements, including decent Q2 2024 earnings with notable increases in total sales and same-store sales. The research underscores the company’s robust international growth plans and the continuation of double-digit growth in operating profit and earnings per share. Despite previous pandemic challenges, AutoZone’s performance has demonstrated market dominance and promising post-pandemic sales trends, further reinforcing analysts’ bullish outlook on the company’s future.
A look at Autozone Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
AutoZone, Inc. is positioned well for long-term success with strong scores in growth, resilience, and momentum according to Smartkarma Smart Scores. With a growth score of 4, the company shows promise in expanding its operations and increasing market share. Additionally, AutoZone’s resilience score of 5 reflects its ability to withstand economic downturns and maintain stable performance over time. The momentum score of 5 suggests that the company is on a positive trajectory, potentially indicating a solid investment opportunity for the future.
As a specialty retailer of automotive replacement parts and accessories in the United States, Puerto Rico, and Mexico, AutoZone, Inc. caters to a wide range of vehicles including cars, sport utility vehicles, vans, and light trucks. While facing challenges in terms of value and dividends according to Smartkarma Smart Scores, the company’s strengths lie in its growth prospects, resilience, and positive momentum, positioning it as a strong contender in the automotive retail industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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