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Tale of the Tape

Zacks Equity Research

AutoZone's (AZO) Q4 Earnings Beat Estimates, Rise Y/Y
September 22, 2016

AZO

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AutoZone, Inc. (AZO - Free Report) is one of the nation’s leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (“DIY”) retail, Do-It-for-Me (“DIFM”) commercial and other customer markets. The company is focused on increasing sales through store expansion and boosting earnings per share via an aggressive share repurchase program.

However, AutoZone has been facing challenges in terms higher expenses related to opening new distribution centers and increasing the frequency of delivery to stores.

Estimate Trend & Surprise History

Investors should note that the fourth quarter (ended Aug 27, 2016) of fiscal 2016 earnings estimates for AutoZone have been falling over the past week and month.

Meanwhile, the company delivered positive earnings surprises in each of the trailing four quarters with an average beat of around 1.31%. Investors have been eagerly awaiting AutoZone’s latest earnings report to see whether it delivers an earnings beat in the fourth quarter.

AUTOZONE INC Price and EPS Surprise

 

AUTOZONE INC Price and EPS Surprise | AUTOZONE INC Quote

Zacks Rank

AutoZone currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. Meanwhile, you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from the company’s earnings announcement below:

Earnings Beat, Increase Y/Y

AutoZone reported earnings of $14.30 per share in the fourth quarter of fiscal 2016, marginally surpassing the Zacks Consensus Estimate of $14.29. Earnings were significantly higher than $12.75 generated in the year-ago quarter.

Revenues Miss, Rise Y/Y

AutoZone logged revenues of $3.40 billion, marginally missing the Zacks Consensus Estimate of $3.44 billion. However, revenues were 3.3% higher than a year-ago.

Key Stats/Developments to Note

AutoZone opened 71 stores in the U.S., 25 stores in Mexico, and 1 Interamerican Motor Corporation (“IMC”) branch during the quarter. Additionally, it relocated 2 stores in the U.S. As of Aug 27, 2016, the company had 5,297 stores in 50 states, the District of Columbia and Puerto Rico in the U.S., 483 stores in Mexico, 8 stores in Brazil and 26 IMC branches. Thus, the total store count was 5,814 as of that date.

Market Reaction

AutoZone’s shares were rising in pre-market trading following the release.  Clearly, the initial reaction to the news is positive.

Check back later for our full write up on AutoZone’s earnings report!

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