Back to top

Image: Shutterstock

AutoZone Q2 Earnings Miss Expectations, Revenues Rise Y/Y

Read MoreHide Full Article

AutoZone Inc. (AZO - Free Report) reported earnings of $28.29 per share for the second quarter of fiscal 2025 (ended Feb. 15, 2025), which missed the Zacks Consensus Estimate of $29.16. The company reported earnings of $28.89 per share in the corresponding quarter of fiscal 2024. Net sales grew 2.4% year over year to $3.95 billion. The top line, however, missed the Zacks Consensus Estimate of $3.99 billion.

See the Zacks Earnings Calendar to stay ahead of market-making news.

In the reported quarter, domestic commercial sales totaled $1.05 billion, up from $980.1 million recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) were up 1.9%.

Gross profit increased to $2.12 billion from the prior-year quarter’s $2.08 billion. Operating profit decreased 4.8% year over year to $706.8 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 quarter, AutoZone opened 28 new stores in the United States. It opened 13 new stores in Mexico and four in Brazil. It exited the quarter with 6,483 stores in the United States, 813 in Mexico and 136 in Brazil. The total store count was 7,432 as of Feb. 15, 2025.

Its inventory increased 10.3% year over year in the reported quarter. At quarter-end, the inventory per store was $877,000 compared with $830,000 a year ago.

Financials and Share Repurchases

As of Feb. 15, 2025, AutoZone had cash and cash equivalents of $300.9 million, up from $298.2 million as of Aug. 31, 2024. Its total debt amounted to $9.05 billion as of Feb. 15, 2025, compared with $9.02 billion as of Aug. 31, 2024.

The company repurchased 100,000 shares of its common stock for $329.4 million during the fiscal second quarter at an average price of $3,291 per share. At quarter-end, it had $1.3 billion remaining under its current share repurchase authorization.

AZO’s Zacks Rank & Key Picks

AutoZone carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Dana Incorporated (DAN - Free Report) and Strattec Security Corporation (STRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days. 

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 10 cents each in the past 30 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.

Published in