Several analysts boosted the price forecast for AutoZone, Inc. AZO following second-quarter results reported on Tuesday.The company reported second-quarter GAAP earnings per share of $28.29, missing the street view of $29.39 and sales of $3.952 billion (+2.4% year over year) missed the analyst consensus estimate of $3.981 billion.Raymond James analyst Bobby Griffin maintained a Strong Buy rating and raised the price target from $3,850 to $4,000.The analyst writes that they remain optimistic about the compan ...

AutoZone, Inc. (NYSE:AZO) Q2 2025 Earnings Conference Call March 4, 2025 10:00 AM ET Company Participants Brian Campbell - VP, Treasurer, IR and Tax Phil Daniele - CEO Jamere Jackson - CFO Conference Call Participants Bret Jordan - Jefferies Christian Carlino - JPMorgan Zach Fadem - Wells Fargo Seth Basham - Wedbush Securities Mark Jordan - Goldman Sachs Steve Forbes - Guggenheim David Bellinger - Mizuho Securities Josh Young - Truist Securities Brian Nagel - Oppenheimer Operator Good day, everyone, and wel ...

Financial Data and Key Metrics Changes - Total sales for the quarter were $4 billion, an increase of 2.4% year-over-year, while earnings per share (EPS) decreased by 2.1% [39][40] - Domestic same-store sales grew by 1.9%, and international same-store sales increased by 9.5% on a constant currency basis [39][40] - Total company EBIT was down 4.9%, with a significant foreign exchange headwind impacting results [40][58] Business Line Data and Key Metrics Changes - Domestic Commercial sales increased by 7.3%, compared to 3.2% growth in the first quarter [12][26] - DIY same-store sales showed a slight improvement, with a 0.1% increase for the quarter [19][47] - The Domestic retail business experienced volatility, particularly in the last week of the quarter, with DIY comps down nearly 7% due to severe weather [15][16] Market Data and Key Metrics Changes - The Northeast and Rust Belt regions showed weaker performance compared to other domestic markets, particularly in the last week of the quarter [24][27] - International business in Mexico and Brazil opened 17 new stores, with same-store sales up 9.5% on a constant currency basis [32][50] Company Strategy and Development Direction - The company is focused on expanding its store base, particularly through the opening of Hubs and Mega-Hubs, with plans to open at least 19 more Mega-Hubs in the second half of the fiscal year [30][76] - Investments in technology and supply chain improvements are aimed at enhancing customer service and operational efficiency [35][37] - The strategy includes maintaining a strong focus on the Domestic Commercial business and continuing growth in international markets [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, citing improved execution and favorable weather conditions as contributing factors to sales growth [31][68] - The company anticipates continued challenges from inflation and foreign exchange rates but remains confident in its ability to maintain margins and drive growth [55][96] Other Important Information - The company generated $291 million in free cash flow for the quarter, up from $179 million in the previous year [63] - A total of 28 net new domestic stores were opened during the quarter, with a commitment to aggressive store growth [30][37] - The company repurchased $330 million of its stock during the quarter, maintaining a strong capital allocation strategy [66] Q&A Session Summary Question: Discussion on operating expense deleverage and investments - Management highlighted investments in IT and technology as key drivers for growth in both DIY and Commercial segments, enhancing speed and productivity [81][82] Question: Impact of store growth in Mexico on profitability - Management noted that investments in distribution capabilities are expected to support profitability as the store base grows [84][85] Question: Context of the 1.9% domestic comp growth - Management attributed the growth to a combination of better weather, improved execution, and strategic initiatives in both DIY and Commercial businesses [88][89] Question: Expectations for gross margins amid inflation - Management indicated that while there may be some drag from the accelerating Commercial business, merchandising margin improvements are expected to offset this [95][96] Question: Potential impact of tariffs on margins - Management expressed confidence in maintaining margin profiles despite tariffs, citing various strategies to manage costs [119][120] Question: Future SG&A growth normalization - Management expects to invest at an accelerated pace in the coming quarters, with a disciplined approach to managing SG&A in line with sales growth [123][124] Question: Performance of the Domestic DIFM side of the business - Management reported broad-based growth across regions and categories, with expectations of gaining market share due to competitor store closures [127][128]

Forward-Looking Statements Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and typically use words such as "believe," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy," "seek," "may," "could" and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical tr ...

Core Insights - AutoZone Inc. reported earnings of $28.29 per share for Q2 fiscal 2025, missing the Zacks Consensus Estimate of $29.16 and down from $28.89 per share in the same quarter of fiscal 2024 [1] - Net sales increased by 2.4% year over year to $3.95 billion, but also fell short of the Zacks Consensus Estimate of $3.99 billion [1] Financial Performance - Domestic commercial sales reached $1.05 billion, up from $980.1 million in the prior year [2] - Domestic same-store sales grew by 1.9% [2] - Gross profit rose to $2.12 billion from $2.08 billion year over year [2] - Operating profit decreased by 4.8% year over year to $706.8 million [2] Store Expansion and Inventory - AutoZone opened 28 new stores in the U.S., 13 in Mexico, and 4 in Brazil, bringing the total store count to 7,432 as of February 15, 2025 [3] - Inventory increased by 10.3% year over year, with inventory per store at $877,000 compared to $830,000 a year ago [3] Cash and Debt Position - As of February 15, 2025, AutoZone had cash and cash equivalents of $300.9 million, slightly up from $298.2 million as of August 31, 2024 [4] - Total debt stood at $9.05 billion, an increase from $9.02 billion as of August 31, 2024 [4] Share Repurchase Activity - The company repurchased 100,000 shares for $329.4 million during the fiscal second quarter at an average price of $3,291 per share [5] - At the end of the quarter, AutoZone had $1.3 billion remaining under its current share repurchase authorization [5] Market Position - AutoZone currently holds a Zacks Rank of 3 (Hold) [6] - Other better-ranked stocks in the auto sector include Geely Automobile Holdings Limited, Dana Incorporated, and Strattec Security Corporation, all with a Zacks Rank of 1 (Strong Buy) [6]

Core Insights - AutoZone reported $3.95 billion in revenue for the quarter ended February 2025, a year-over-year increase of 2.4%, but fell short of the Zacks Consensus Estimate by -0.89% [1] - The EPS for the same period was $28.29, down from $28.89 a year ago, representing an EPS surprise of -2.98% compared to the consensus estimate of $29.16 [1] Financial Performance Metrics - Same store sales in the domestic market increased by 1.9%, exceeding the seven-analyst average estimate of 1.3% [4] - Total Same Store Sales (Constant Currency) grew by 2.9%, compared to the 2.1% average estimate based on five analysts [4] - The total number of AutoZone stores reached 7,432, slightly above the four-analyst average estimate of 7,430 [4] - Domestic store count was 6,483, compared to the average estimate of 6,481 [4] - Net Sales for Auto Parts were reported at $3.87 billion, below the $3.91 billion average estimate, but showed a year-over-year increase of +2.3% [4] - Domestic Commercial sales reached $1.05 billion, surpassing the estimated $1.02 billion, reflecting a +7.3% change year-over-year [4] Stock Performance - AutoZone shares returned +1.3% over the past month, while the Zacks S&P 500 composite experienced a -2.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - AutoZone reported quarterly earnings of $28.29 per share, missing the Zacks Consensus Estimate of $29.16 per share, representing an earnings surprise of -2.98% [1] - The company posted revenues of $3.95 billion for the quarter, missing the Zacks Consensus Estimate by 0.89%, compared to $3.86 billion in the same quarter last year [2] - AutoZone shares have increased by approximately 8.6% since the beginning of the year, while the S&P 500 has declined by -0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $38.33 on revenues of $4.41 billion, and for the current fiscal year, it is $153 on revenues of $18.8 billion [7] - The estimate revisions trend for AutoZone is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Automotive - Retail and Wholesale - Parts industry is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - AutoZone Inc. reported its fourth consecutive revenue miss in the fiscal second quarter, leading to a 1.1% decline in premarket shares [1] Financial Performance - Net income for the quarter ending February 15, 2025, was $488 million, or $28.29 per share, compared to $515 million, or $28.89 per share, in the same quarter of the previous year [1] - Analysts had anticipated earnings of $29.05 per share, indicating a shortfall in expected performance [1]

EXHIBIT 99.1 AutoZone 2nd Quarter Total Company Same Store Sales Increase 2.9%; Domestic Same Store Sales Increase 1.9%; EPS of $28.29 MEMPHIS, Tenn., March 04, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.0 billion for its second quarter (12 weeks) ended February 15, 2025, an increase of 2.4% from the second quarter of fiscal 2024 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows: | | Constant | | | ...

Core Insights - AutoZone, Inc. reported net sales of $4.0 billion for Q2 FY2025, reflecting a 2.4% increase from the same quarter in FY2024 [1] - Same store sales showed mixed results, with domestic sales increasing by 1.9% and international sales decreasing by 8.2% [1][24] - The company opened 45 new stores during the quarter, bringing the total store count to 7,432 [6] Financial Performance - Gross profit margin remained flat at 53.9%, with operating expenses increasing to 36.0% of sales compared to 34.6% last year [2] - Operating profit decreased by 4.9% to $706.8 million, and net income fell by 5.3% to $487.9 million [3] - Diluted earnings per share decreased by 2.1% to $28.29 [3] Inventory and Sales Metrics - Inventory increased by 10.4% year-over-year, with net inventory per store slightly improving to negative $161 thousand [4][25] - Total auto parts sales reached $3.87 billion, a 2.3% increase compared to the previous year [23] - Domestic commercial sales increased by 7.3% to $1.05 billion [23] Strategic Initiatives - The company continues to focus on growing its domestic DIY and commercial sales, with positive momentum heading into the spring and summer selling season [5] - AutoZone's international business showed strong results with same store sales growth of 9.5% on a constant currency basis [5] Share Repurchase and Capital Management - Under its share repurchase program, AutoZone repurchased 100,000 shares at an average price of $3,291, totaling $329.4 million [3] - The company has $1.3 billion remaining under its current share repurchase authorization [3]