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Is AutoZone's (AZO) Beat Streak Likely to Snap in Q2 Earnings?
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AutoZone (AZO - Free Report) is slated to release second-quarter fiscal 2023 results on Feb 28, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $21.33 per share and $3.54 billion, respectively.
The Zacks Consensus Estimate for fiscal second-quarter earnings per share has moved 11 cents north in the past 30 days. The bottom-line projection, however, indicates a contraction of 4.35% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly revenues implies a 5% rise from the prior-year level.
The automotive parts retailer posted better-than-anticipated results in the last reported quarter. Earnings of $27.45 per share improved 6.8% from the prior-year figure and topped the Zacks Consensus Estimate of $25.15. Over the trailing four quarters, the company surpassed earnings estimates on all occasions, with the average being 13.1%. This is depicted in the graph below:
AutoZone’s wide-ranging product portfolio, serving both retail DIY (‘Do-It-Yourself) and commercial DIFM (‘Do-It-For-Me) businesses, is likely to have boosted comparable sales growth during the to-be-reported quarter. The company’s digitalization efforts to enhance customers’ shopping experience are also likely to have boosted top-line growth. Ship-to-home next day, buy online and curbside pick-up options are expected to have supported AutoZone’s sales. AZO’s initiatives to enhance in-store systems and website traffic are likely to have positively impacted the quarterly performance.
On the flip side, the company’s store expansion initiatives are anticipated to have negatively impacted AZO’s bottom line in the fiscal second quarter. Though doubling down on expansion with the opening of new distribution centers, mega hubs and stores is likely to have boosted AutoZone’s prospects, it may have strained near-term financials and operating margins. Additionally, commodity cost inflation is expected to hurt the results. AutoZone’s technology investments to improve the electronic catalog might also have limited cash inflows in the to-be-reported quarter.
What Does Our Model Say?
Our proven model does not conclusively predict an earnings beat for AutoZone this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: AutoZone has an Earnings ESP of -1.13%. This is because the Most Accurate Estimate is pegged 24 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Advance Auto will release fiscal fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of -5.25% and a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s loss and revenues is pegged at $2.41 per share and $2.42 billion, respectively. AAP surpassed earnings estimates in two of the trailing four quarters, met once and and missed in the other, with an average negative surprise of 2.06%.
O’Reilly reported fourth-quarter 2022 results on Feb 8. Adjusted earnings per share of $8.37 surpassed the Zacks Consensus Estimate of $7.71. Higher-than-expected comps growth resulted in the outperformance. Comps grew 9% in the reported quarter and topped the Zacks Consensus Estimate of 4.07%. The bottom line increased 10% from $7.64 in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $3.64 billion, crossing the consensus mark of $3.51 billion. The top line was 11% higher than the prior-year figure of $3.29 million. During the quarter, O’Reilly opened 20 new stores in the United States and 14 in Mexico. The total store count was 5,971 as of Dec 31, 2022.
Image: Shutterstock
Is AutoZone's (AZO) Beat Streak Likely to Snap in Q2 Earnings?
AutoZone (AZO - Free Report) is slated to release second-quarter fiscal 2023 results on Feb 28, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $21.33 per share and $3.54 billion, respectively.
The Zacks Consensus Estimate for fiscal second-quarter earnings per share has moved 11 cents north in the past 30 days. The bottom-line projection, however, indicates a contraction of 4.35% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly revenues implies a 5% rise from the prior-year level.
The automotive parts retailer posted better-than-anticipated results in the last reported quarter. Earnings of $27.45 per share improved 6.8% from the prior-year figure and topped the Zacks Consensus Estimate of $25.15. Over the trailing four quarters, the company surpassed earnings estimates on all occasions, with the average being 13.1%. This is depicted in the graph below:
AutoZone, Inc. Price and EPS Surprise
AutoZone, Inc. price-eps-surprise | AutoZone, Inc. Quote
Things to Note
AutoZone’s wide-ranging product portfolio, serving both retail DIY (‘Do-It-Yourself) and commercial DIFM (‘Do-It-For-Me) businesses, is likely to have boosted comparable sales growth during the to-be-reported quarter. The company’s digitalization efforts to enhance customers’ shopping experience are also likely to have boosted top-line growth. Ship-to-home next day, buy online and curbside pick-up options are expected to have supported AutoZone’s sales. AZO’s initiatives to enhance in-store systems and website traffic are likely to have positively impacted the quarterly performance.
On the flip side, the company’s store expansion initiatives are anticipated to have negatively impacted AZO’s bottom line in the fiscal second quarter. Though doubling down on expansion with the opening of new distribution centers, mega hubs and stores is likely to have boosted AutoZone’s prospects, it may have strained near-term financials and operating margins. Additionally, commodity cost inflation is expected to hurt the results. AutoZone’s technology investments to improve the electronic catalog might also have limited cash inflows in the to-be-reported quarter.
What Does Our Model Say?
Our proven model does not conclusively predict an earnings beat for AutoZone this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: AutoZone has an Earnings ESP of -1.13%. This is because the Most Accurate Estimate is pegged 24 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AutoZone carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Updates
AutoZone’s peers include Advance Auto Parts (AAP - Free Report) and O’Reilly Automotive (ORLY - Free Report) .
Advance Auto will release fiscal fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of -5.25% and a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s loss and revenues is pegged at $2.41 per share and $2.42 billion, respectively. AAP surpassed earnings estimates in two of the trailing four quarters, met once and and missed in the other, with an average negative surprise of 2.06%.
O’Reilly reported fourth-quarter 2022 results on Feb 8. Adjusted earnings per share of $8.37 surpassed the Zacks Consensus Estimate of $7.71. Higher-than-expected comps growth resulted in the outperformance. Comps grew 9% in the reported quarter and topped the Zacks Consensus Estimate of 4.07%. The bottom line increased 10% from $7.64 in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $3.64 billion, crossing the consensus mark of $3.51 billion. The top line was 11% higher than the prior-year figure of $3.29 million. During the quarter, O’Reilly opened 20 new stores in the United States and 14 in Mexico. The total store count was 5,971 as of Dec 31, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.