Get ready for another potential earnings beat from AutoZone Inc (AZO), the automotive parts giant. The company is set to report its fourth-quarter financial results before the market opens on Tuesday, September 24th. Analysts are expecting big things from AutoZone, predicting earnings per share to reach $53.53, a significant jump from last year’s $46.46. This optimistic outlook is fueled by the company’s impressive track record, having surpassed analysts’ earnings estimates for an impressive 19 consecutive quarters.
Revenue is also expected to climb, with analysts forecasting a total of $6.22 billion, up from $5.69 billion in the same period last year. While AutoZone has consistently outperformed revenue expectations in eight of the past ten quarters, it did stumble in two of the last three.
While analysts are generally bullish on AutoZone’s performance, they also acknowledge some potential headwinds. Truist analyst Scot Ciccarelli expects fourth-quarter sales to be in line with estimates but notes that fluctuations in currency exchange rates could impact international comparable sales. He also highlights the overall challenging nature of the auto parts sector.
Despite these potential hurdles, Ciccarelli remains optimistic about AutoZone’s future, citing the company’s strong position in the market and its ability to navigate challenges. He anticipates an increase in gross margins due to stable retail prices and lower procurement costs.
The trend of repairing vehicles instead of replacing them is a significant factor contributing to AutoZone’s success. Data from Placer.ai shows that the company’s store visits increased by 4.4% year-over-year during the second quarter, with continued growth in June, July, and August. This positive trend suggests that AutoZone is well-positioned to benefit from the increasing number of older vehicles on the road.
While the company acknowledged the impact of tax refunds and weather in the third quarter, these factors are unlikely to be significant in the fourth-quarter results. AutoZone remains focused on maximizing its summer selling season, with initiatives to enhance inventory availability, accelerate its domestic commercial business, and provide exceptional customer service.
AutoZone’s stock closed Monday at $3,048.82, up 0.93%, trading within a 52-week range of $2,375.35 to $3,256.37. Investors will be closely watching the company’s earnings report for insights into its future performance and its ability to maintain its momentum in the competitive auto parts market.
