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AutoZone Inc. (AZO - Free Report) reported earnings of $28.89 per share for second-quarter fiscal 2024 (ended Feb 10, 2024), up 17.2% year over year. Earnings surpassed the Zacks Consensus Estimate of $26.08 per share.
Net sales grew 4.6% year over year to $3.86 billion. The top line marginally surpassed the Zacks Consensus Estimate of $3.85 billion.
In the reported quarter, domestic commercial sales totaled $980.1 million, up from $954.6 million recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) rose 0.3%.
Gross profit increased to $2.08 billion from the prior-year quarter’s $1.93 billion. Operating profit increased 10.9% year over year to $743.2 million.
During the quarter, AutoZone opened 19 new stores in the United States and closed three. It opened six new stores in Mexico and four in Brazil. It exited the quarter with 6,332 stores in the United States, 751 in Mexico and 108 in Brazil. The total store count was 7,191 as of Feb 10, 2024.
Its inventory increased 4.2% year over year in the reported quarter, led by new store growth. At quarter-end, the inventory per location was negative $164,000 compared with negative $227,000 a year ago.
Financials and Share Repurchases
As of Feb 10, 2024, AutoZone had cash and cash equivalents of $304.1 million, up from $277.1 million as of Aug 26, 2023.
Its total debt amounted to $8.63 billion as of Feb 10, 2024 compared with $7.67 billion as of Aug 26, 2023.
The company repurchased 84,000 shares of its common stock for $223.8 million during the fiscal second quarter at an average price of $2,676 per share. At quarter-end, it had $2.1 billion remaining under its current share repurchase authorization.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 2.9%, respectively. The EPS estimates for 2024 and 2025 have improved 9 cents and 40 cents, respectively, in the past 30 days.
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AutoZone (AZO) Q2 Earnings & Sales Beat Estimates, Rise Y/Y
AutoZone Inc. (AZO - Free Report) reported earnings of $28.89 per share for second-quarter fiscal 2024 (ended Feb 10, 2024), up 17.2% year over year. Earnings surpassed the Zacks Consensus Estimate of $26.08 per share.
Net sales grew 4.6% year over year to $3.86 billion. The top line marginally surpassed the Zacks Consensus Estimate of $3.85 billion.
In the reported quarter, domestic commercial sales totaled $980.1 million, up from $954.6 million recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) rose 0.3%.
Gross profit increased to $2.08 billion from the prior-year quarter’s $1.93 billion. Operating profit increased 10.9% year over year to $743.2 million.
AutoZone, Inc. Price, Consensus and EPS Surprise
AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote
Store Opening & Inventory
During the quarter, AutoZone opened 19 new stores in the United States and closed three. It opened six new stores in Mexico and four in Brazil. It exited the quarter with 6,332 stores in the United States, 751 in Mexico and 108 in Brazil. The total store count was 7,191 as of Feb 10, 2024.
Its inventory increased 4.2% year over year in the reported quarter, led by new store growth. At quarter-end, the inventory per location was negative $164,000 compared with negative $227,000 a year ago.
Financials and Share Repurchases
As of Feb 10, 2024, AutoZone had cash and cash equivalents of $304.1 million, up from $277.1 million as of Aug 26, 2023.
Its total debt amounted to $8.63 billion as of Feb 10, 2024 compared with $7.67 billion as of Aug 26, 2023.
The company repurchased 84,000 shares of its common stock for $223.8 million during the fiscal second quarter at an average price of $2,676 per share. At quarter-end, it had $2.1 billion remaining under its current share repurchase authorization.
Zacks Rank & Key Picks
AZO currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , General Motors Company (GM - Free Report) and Oshkosh Corporation (OSK - Free Report) . MOD & GM sport a Zacks Rank #1 (Strong Buy) each, while OSK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 2.9%, respectively. The EPS estimates for 2024 and 2025 have improved 9 cents and 40 cents, respectively, in the past 30 days.