AutoZone Reports Q2 Beat, Shares Up 2%

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company operates thousands of stores across the U.S., Mexico, and Brazil, providing a wide range of products for cars, trucks, and SUVs. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O'Reilly Automotive.

Over the past year, AutoZone has experienced a notable upward trend in its consensus price target. Last month, the average price target was $4,029.60, indicating positive sentiment among analysts. This suggests confidence in AutoZone's performance and potential for growth, as analysts see the company as a strong player in the market.

In the last quarter, the average price target for AutoZone was $3,915.50. This increase from the previous quarter reflects growing optimism about the company's prospects. Analysts are likely encouraged by AutoZone's strategic expansion efforts and its ability to maintain a strong market presence.

A year ago, the average price target was $3,596.44. The significant increase over the past year shows a strong upward trajectory in analysts' expectations. This bullish sentiment may be attributed to AutoZone's robust business model and extensive product offerings, which have contributed to its positive outlook.

As AutoZone prepares to announce its third-quarter earnings results, analysts have been revising their forecasts. Notably, Kate McShane from Goldman Sachs has set a price target of $2,296 for AutoZone, as highlighted by Benzinga. This revision indicates that while some analysts remain cautious, the overall trend in price targets suggests confidence in AutoZone's future performance.

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company operates thousands of stores across the country, providing a wide range of products for cars, trucks, and other vehicles. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O'Reilly Auto Parts.

On May 23, 2025, Scot Ciccarelli from Truist Financial set a price target of $3,995 for AutoZone. At that time, the stock was priced at $3,829.93, suggesting a potential increase of about 4.31% to reach the target. This optimistic outlook aligns with the company's upcoming third-quarter earnings release, which is expected to show growth.

AutoZone is set to announce its third-quarter earnings results on May 27. Analysts predict earnings of $37 per share, up from $36.69 per share in the same period last year. The anticipated quarterly revenue is $4.41 billion, an increase from $4.24 billion a year earlier. These figures indicate a positive trend in the company's financial performance.

In the previous quarter, AutoZone reported GAAP earnings per share of $28.29, which was below the market's expectation of $29.39. This led to a slight decline of 0.3% in the stock price, closing at $3,859.25. Despite this, Wells Fargo analyst Zachary Fadem has maintained an Overweight rating on AutoZone and increased the price target from $3,850, indicating confidence in the company's future performance.

Currently, AutoZone's stock is priced at $3,829.93, experiencing a decrease of approximately 0.76% today. The stock has traded between a low of $3,821.95 and a high of $3,889 during the day. Over the past year, it has reached a high of $3,916.81 and a low of $2,728.97. With a market capitalization of approximately $64.07 billion and a trading volume of 126,280 shares, AutoZone remains a significant player in the automotive parts industry.

• UBS upgrades AutoZone (NYSE:AZO) to "Buy" with a stock price of approximately $3,830.33 ahead of Q3 earnings.
• Analysts project an increase in earnings per share to $37 and quarterly revenue to $4.41 billion.
• BofA Securities raises AutoZone's price target from $3,900 to $4,800, highlighting its resilience and market share gains.

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company serves both DIY customers and professional installers, offering a wide range of products. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O'Reilly Automotive.

On May 23, 2025, UBS updated its rating for AutoZone to "Buy," with the stock priced at approximately $3,830.33. This update comes as AutoZone prepares to release its third-quarter earnings results on May 27. Analysts expect the company to report earnings of $37 per share, up from $36.69 per share in the same period last year, and quarterly revenue of $4.41 billion, an increase from $4.24 billion a year earlier.

Despite a previous earnings miss in the second quarter, where AutoZone reported GAAP earnings per share of $28.29, falling short of the expected $29.39, the company's stock only saw a slight decline of 0.3%. This resilience is reflected in the confidence of analysts like Wells Fargo's Zachary Fadem, who maintains an Overweight rating and has increased the price target from $3,850.

BofA Securities analyst Robert F. Ohmes has also upgraded AutoZone from Neutral to Buy, raising the price target from $3,900 to $4,800. Ohmes cites AutoZone's ability to thrive during economic downturns and its market share gains in both the DIY and professional segments. The analyst projects an EPS of $38.15 for the upcoming quarter, compared to the consensus estimate of $36.80.

AutoZone's stock is currently priced at $3,829.93, experiencing a slight decrease of 0.76%. The stock has seen a 52-week high of $3,916.81 and a low of $2,728.97, with a market capitalization of approximately $64.07 billion. As AutoZone continues to expand its store network and strengthen its Pro business, analysts remain optimistic about its future performance.

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company serves both DIY customers and professional service providers, offering a wide range of products. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O'Reilly Automotive.

On May 27, 2025, AutoZone is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $36.78 and projected revenue of approximately $4.41 billion. Analyst Robert F. Ohmes from BofA Securities has upgraded AutoZone from Neutral to Buy, raising the price target from $3,900 to $4,800. This upgrade is based on AutoZone's ability to perform well during economic downturns and its market share gains in both the DIY and professional segments.

Ohmes projects an EPS of $38.15 for AutoZone's third-quarter results, surpassing the consensus estimate of $36.80. He also anticipates domestic comparable sales growth of 2.0%, slightly below the consensus of 2.4%. The analyst highlights the potential benefits from price increases due to inflation and the improving dynamics in the used versus new car market, which could positively impact AutoZone's performance.

AutoZone's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 25.53, indicating how the market values its earnings. Its price-to-sales ratio is about 3.46, reflecting the value investors place on its sales. The enterprise value to sales ratio is around 4.10, suggesting the market's valuation of the company relative to its sales, including debt.

The company's enterprise value to operating cash flow ratio is approximately 24.44, indicating its valuation in relation to cash flow from operations. AutoZone's earnings yield is about 3.92%, providing insight into the return on investment for shareholders. The debt-to-equity ratio of approximately -2.77 highlights its capital structure and financial leverage, while a current ratio of around 0.84 suggests its ability to cover short-term liabilities with short-term assets.

AutoZone (NYSE:AZO) delivered a mixed financial performance in its second-quarter earnings report, with revenue slightly exceeding analyst expectations while earnings came in below projections.

For the quarter, AutoZone reported net sales of $4 billion, marking a 2.4% year-over-year increase and edging past the consensus estimate of $3.98 billion. However, adjusted earnings per share fell short at $28.29, missing the forecasted $29.06.

Same-store sales saw a modest uptick of 0.5%, with domestic locations performing better than international ones. U.S. same-store sales rose 1.9%, while international same-store sales declined 8.2%, largely due to unfavorable currency exchange rates. Adjusting for currency fluctuations, international sales actually grew 9.5%.

Despite the revenue growth, profitability faced headwinds. Gross profit margin remained steady at 53.9%, but operating profit fell 4.9% to $706.8 million, while net income slipped 5.3% to $487.9 million.

The company continued its expansion strategy, adding 45 net new stores during the quarter, bringing its total count to 7,432 across the U.S., Mexico, and Brazil. Additionally, AutoZone repurchased 100,000 shares for $329.4 million, with $1.3 billion still available under its current share repurchase program.

Looking ahead, AutoZone remains optimistic about its momentum going into the second half of the fiscal year, highlighting its strategic focus on strengthening both DIY and commercial sales as it prepares for peak seasonal demand in the spring and summer months.

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company operates in the Zacks Automotive - Retail and Wholesale - Parts industry, competing with other major players like O'Reilly Automotive and Advance Auto Parts. AutoZone's business model focuses on providing a wide range of products for both professional mechanics and do-it-yourself customers.

On March 4, 2025, AutoZone reported earnings per share (EPS) of $28.29, which was below the estimated $29.05. This represents a negative surprise of 2.98%, as highlighted by Zacks. The EPS also decreased from $28.89 in the same quarter last year. In the previous quarter, AutoZone reported an EPS of $32.52, missing the expected $33.54, resulting in a 3.04% negative surprise. Over the past four quarters, AutoZone has exceeded consensus EPS estimates only once.

AutoZone's revenue for the quarter ending February 2025 was $3.95 billion, slightly below the estimated $3.98 billion, marking a 0.89% shortfall according to Zacks. Despite this, the revenue showed a slight increase from $3.86 billion reported a year ago. The company has surpassed consensus revenue estimates only once in the last four quarters. AutoZone's stock declined following its fourth consecutive revenue miss, despite strong performance in the U.S. market.

The company faces challenges from cautious consumer spending and currency rate fluctuations, impacting its ability to meet revenue expectations. AutoZone's international business, however, continues to perform well and remains a source of encouragement. The company's price-to-earnings (P/E) ratio is approximately 22.02, indicating the market's valuation of its earnings, while its price-to-sales ratio is about 3.10, reflecting the market's valuation of its revenue.

AutoZone's financial metrics provide insights into its valuation and financial health. The enterprise value to sales ratio is around 3.74, and the enterprise value to operating cash flow ratio is approximately 23.28. The earnings yield is about 4.54%, offering a perspective on the return on investment. The company has a negative debt-to-equity ratio of approximately -0.70, suggesting a higher level of liabilities compared to its equity. Additionally, AutoZone's current ratio is approximately 0.83, indicating its ability to cover short-term liabilities with short-term assets.

AutoZone (NYSE:AZO) delivered a mixed financial performance in its second-quarter earnings report, with revenue slightly exceeding analyst expectations while earnings came in below projections.

For the quarter, AutoZone reported net sales of $4 billion, marking a 2.4% year-over-year increase and edging past the consensus estimate of $3.98 billion. However, adjusted earnings per share fell short at $28.29, missing the forecasted $29.06.

Same-store sales saw a modest uptick of 0.5%, with domestic locations performing better than international ones. U.S. same-store sales rose 1.9%, while international same-store sales declined 8.2%, largely due to unfavorable currency exchange rates. Adjusting for currency fluctuations, international sales actually grew 9.5%.

Despite the revenue growth, profitability faced headwinds. Gross profit margin remained steady at 53.9%, but operating profit fell 4.9% to $706.8 million, while net income slipped 5.3% to $487.9 million.

The company continued its expansion strategy, adding 45 net new stores during the quarter, bringing its total count to 7,432 across the U.S., Mexico, and Brazil. Additionally, AutoZone repurchased 100,000 shares for $329.4 million, with $1.3 billion still available under its current share repurchase program.

Looking ahead, AutoZone remains optimistic about its momentum going into the second half of the fiscal year, highlighting its strategic focus on strengthening both DIY and commercial sales as it prepares for peak seasonal demand in the spring and summer months.