Back to top

Image: Bigstock

AutoZone's (AZO) Q2 Earnings Top Estimates, Sales Increase Y/Y

Read MoreHide Full Article

AutoZone Inc. (AZO - Free Report) reported earnings of $22.3 per share in second-quarter fiscal 2022, surging 49.4% from the prior-year figure of $14.93. The bottom line also surpassed the Zacks Consensus Estimate of $17.80. Robust comparable sales growth and domestic commercial sales growth led to this outperformance.

Net income increased 36.4% year over year to $471.8 million. Net sales also grew 15.8% to $3,369.8 million. The top line beat the Zacks Consensus Estimate of $3,157.1 million.

In the reported quarter, domestic commercial sales totaled $843.8 million, up from $638.9 million recorded in the year-ago period. The metric also crossed the consensus mark of $719 million. In addition, domestic same-store sales (sales at stores open at least for a year) rose 13.8%, handily beating the Zacks Consensus Estimate of 7.62%.

Gross profit increased to $1,785.2 million from the prior-year quarter’s $1,559.4 million. Operating profit jumped to $626.8 million from $481.8 million.

AutoZone, Inc. Price, Consensus and EPS Surprise

AutoZone, Inc. Price, Consensus and EPS Surprise

AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote

Store Opening & Inventory

During the fiscal first quarter, AutoZone opened 26 new stores and closed one in the United States, three in Mexico and two in Brazil. It exited the quarter with 6,091 stores in the United States, 669 in Mexico and 55 in Brazil. The total store count was 6,815 as of Feb 12, 2022.

AutoZone’s inventory improved 6.2% year over year in the reported quarter on store openings. At quarter-end, inventory per location was $738,000, up from $715,000.

Financials and Share Repurchases

AutoZone had cash and cash equivalents of $239.4 million as of Feb 12, 2022, down from $1,026.2 million on Feb 13, 2021. Total debt amounted to $5,840.9 million as of Feb 12, 2022, marking an increase from $5,516.4 million on Feb 13, 2021.

Under its share repurchase program, AutoZone repurchased 783 thousand shares of its common stock for $1.6 billion during the fiscal second quarter, at an average price of $1,992 per share. At the end of the quarter, it had $958 million remaining under its current share repurchase authorization.

Zacks Rank & Key Picks

Currently, AZO has a Zacks Rank #3 (Hold).    

Better-ranked players in the retail-wholesale space include AutoNation (AN - Free Report) and Asbury Automotive Group (ABG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive (GPI - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5.2% upward in the past 60 days.

AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 50.5% over a year.

Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 12.4% upward in the past 60 days.

Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 15.7% over a year.

Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.

Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.

Published in