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AutoZone (AZO) Q1 Earnings Beat on Better-Than-Expected Comps
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AutoZone Inc. (AZO - Free Report) reported earnings of $27.45 per share for first-quarter fiscal 2023, up 6.8% from the prior-year figure of $25.69. The bottom line surpassed the Zacks Consensus Estimate of $25.15 per share on higher-than-expected comps growth. The net sales also grew 8.6% to $3,985.1 million. The top line beat the Zacks Consensus Estimate of $3,836 million.
In the reported quarter, the domestic commercial sales totaled $1,034.4 million, up from $899.9 million recorded in the year-ago period. The domestic same-store sales (sales at stores open at least for a year) rose 5.6%, ahead of the Zacks Consensus Estimate of 3.37%. The gross profit increased to $1,994.6 million from the prior-year quarter’s figure of $1,925.2 million. The operating profit slipped 4.2% year over year to $723 million.
Store Opening & Inventory
During the quarter ended Nov 19, AutoZone opened 28 new stores in the United States, three in Mexico and four in Brazil. It exited the quarter with 6,196 stores in the United States, 706 in Mexico and 76 in Brazil. The total store count was 6,978 as of Nov 19.
AutoZone’s inventory increased 17.6% year over year in the reported quarter, led by growth initiatives and inflation. At quarter-end, the inventory per location was negative $249,000 compared with negative $207,000 a year ago.
Financials and Share Repurchases
As of Nov 19, AutoZone had cash and cash equivalents of $269.8 million, plunging from $961.1 million on Nov 20, 2021. The total debt amounted to $6,328.3 million as of Nov 19, marking an increase from $5,271.3 million on Nov 20, 2021.
Under its share repurchase program, AutoZone repurchased 392,000 shares of its common stock for $900 billion during the fiscal first quarter of 2023, at an average price of $2,295 per share. At quarter-end, it had nearly $2.7 billion remaining under its current share repurchase authorization.
AutoZone’s close peers include Advance Auto Parts, Inc. (AAP - Free Report) and O’Reilly Automotive (ORLY - Free Report) .
Advance Auto released third-quarter 2022 results on Nov 15. The company’s adjusted earnings of $2.84 per share were down 11.5% from the year-ago quarter’s figure and missed the Zacks Consensus Estimate of $3.32 per share. AAP’s revenues of $2,641.3 million fell short of the Zacks Consensus Estimate of $2,652 million and inched down 0.8% from the year-ago reported figure. Advance Auto estimates 2022 net sales in the band of $11-$11.2 billion. The company targets an FCF of a minimum of $300 million. Adjusted EPS is forecast between $12.60 and $12.80. The auto parts retailer now intends to buy back a maximum of $600 million worth of shares in 2022. It aims to open 125-150 new stores this year.
O’Reilly posted third-quarter 2022 results on Oct 26. Adjusted earnings of $9.17 per share surpassed the Zacks Consensus Estimate of $8.46. The bottom line increased 13.6% from $8.07 per share in the prior-year quarter. ORLY registered quarterly revenues of $3,799.6 million, crossing the Zacks Consensus Estimate of $3,713 million. The top line was 9% higher than the prior-year’s figure of $3,479.5 million. The company expects 2022 revenues in the range of $14.1-$14.3 billion. Earnings per share are expected in the range of $32.35-$32.85. Free cash flow is projected in the band of $1.8-$2.1 billion.
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AutoZone (AZO) Q1 Earnings Beat on Better-Than-Expected Comps
AutoZone Inc. (AZO - Free Report) reported earnings of $27.45 per share for first-quarter fiscal 2023, up 6.8% from the prior-year figure of $25.69. The bottom line surpassed the Zacks Consensus Estimate of $25.15 per share on higher-than-expected comps growth. The net sales also grew 8.6% to $3,985.1 million. The top line beat the Zacks Consensus Estimate of $3,836 million.
In the reported quarter, the domestic commercial sales totaled $1,034.4 million, up from $899.9 million recorded in the year-ago period. The domestic same-store sales (sales at stores open at least for a year) rose 5.6%, ahead of the Zacks Consensus Estimate of 3.37%. The gross profit increased to $1,994.6 million from the prior-year quarter’s figure of $1,925.2 million. The operating profit slipped 4.2% year over year to $723 million.
Store Opening & Inventory
During the quarter ended Nov 19, AutoZone opened 28 new stores in the United States, three in Mexico and four in Brazil. It exited the quarter with 6,196 stores in the United States, 706 in Mexico and 76 in Brazil. The total store count was 6,978 as of Nov 19.
AutoZone’s inventory increased 17.6% year over year in the reported quarter, led by growth initiatives and inflation. At quarter-end, the inventory per location was negative $249,000 compared with negative $207,000 a year ago.
Financials and Share Repurchases
As of Nov 19, AutoZone had cash and cash equivalents of $269.8 million, plunging from $961.1 million on Nov 20, 2021. The total debt amounted to $6,328.3 million as of Nov 19, marking an increase from $5,271.3 million on Nov 20, 2021.
Under its share repurchase program, AutoZone repurchased 392,000 shares of its common stock for $900 billion during the fiscal first quarter of 2023, at an average price of $2,295 per share. At quarter-end, it had nearly $2.7 billion remaining under its current share repurchase authorization.
AZO carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
AutoZone’s close peers include Advance Auto Parts, Inc. (AAP - Free Report) and O’Reilly Automotive (ORLY - Free Report) .
Advance Auto released third-quarter 2022 results on Nov 15. The company’s adjusted earnings of $2.84 per share were down 11.5% from the year-ago quarter’s figure and missed the Zacks Consensus Estimate of $3.32 per share. AAP’s revenues of $2,641.3 million fell short of the Zacks Consensus Estimate of $2,652 million and inched down 0.8% from the year-ago reported figure. Advance Auto estimates 2022 net sales in the band of $11-$11.2 billion. The company targets an FCF of a minimum of $300 million. Adjusted EPS is forecast between $12.60 and $12.80. The auto parts retailer now intends to buy back a maximum of $600 million worth of shares in 2022. It aims to open 125-150 new stores this year.
O’Reilly posted third-quarter 2022 results on Oct 26. Adjusted earnings of $9.17 per share surpassed the Zacks Consensus Estimate of $8.46. The bottom line increased 13.6% from $8.07 per share in the prior-year quarter. ORLY registered quarterly revenues of $3,799.6 million, crossing the Zacks Consensus Estimate of $3,713 million. The top line was 9% higher than the prior-year’s figure of $3,479.5 million. The company expects 2022 revenues in the range of $14.1-$14.3 billion. Earnings per share are expected in the range of $32.35-$32.85. Free cash flow is projected in the band of $1.8-$2.1 billion.