STOCK RISES QUICKLY AFTER THE SIGNAL AT 10:17 AM AND HITS THE HIGH OF THE DAY AT 10:55 AM EDTToday, TradePulse’s latest Power Inflow alert indicated institutional volume is coming into AutoZone Inc. AZO, signaling a shift from net selling to buying. This shift is a key indicator of rising investor confidence and the potential for an uptrend in AZO’s stock.At 10:17 AM ET on SEPTEMBER 24th, AZO registered a Power Inflow at a price of $2987.80. Following this signal, the stock reached its high point at 10:55 A ...

AutoZone Inc. (AZO) reported earnings of $48.11 per share for fourth-quarter fiscal 2024 (ended Aug. 31, 2024), up 3.5% year over year. However, earnings missed the Zacks Consensus Estimate of $53.31 per share. Net sales grew 9% year over year to $6.20 billion. The top line surpassed the Zacks Consensus Estimate of $6.18 billion.In the reported quarter, domestic commercial sales totaled $1.66 billion, up from $1.50 billion recorded in the year-ago period. Domestic same-store sales (sales at stores open at l ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about AutoZone (AZO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.AutoZone currently has an average ...

AutoZone, Inc. (NYSE: AZO ) has been a terrific investment over the last 10 years, outperforming the S&P 500 ( SPY ) thanks to excellent capital allocation. Using FCF to aggressively buy back shares has really paid My primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for thes ...

Financial Data and Key Metrics - Total sales growth for fiscal 2024 was 5.9%, with EPS increasing by 13%. Excluding the extra week, sales were up 3.8% and EPS was up 10.4% [7] - Q4 total sales increased by 9%, with EPS up 11%. On a 16-week basis, Q4 sales were up 2.6% and EPS was up 3.5% [8] - Domestic same-store sales grew 0.2%, while international same-store sales grew 9.9% [8] - Domestic commercial sales accelerated sequentially, finishing up 4.5% versus last year's Q4 of 3.9% [9] - International business faced a nearly 500 basis points currency headwind, resulting in reported growth of approximately 5% [9] - Q4 total sales were $6.2 billion, up 9% year-over-year. Full-year sales were $18.5 billion, up 5.9% [19] - Q4 EBIT grew 6.1%, and EPS grew 11%. Full-year EBIT was $3.8 billion, up 9.1%, and EPS was $149.55, up 13% [18][31] Business Line Performance - Domestic DIY comp sales were down 1% in Q4, with discretionary category sales down 5% year-over-year [10] - Domestic commercial sales increased 10.9% in Q4 to $1.7 billion, representing 31% of domestic auto parts sales and 27% of total company sales [20][21] - International same-store sales grew 9.9% on a constant-currency basis, with 49 new stores opened in Mexico and Brazil, bringing the total to 921 international stores [16][26] - Mega-hubs averaged significantly higher sales and grew faster than the balance of the commercial business, with 109 mega-hubs in operation [22][23] Market Performance - Domestic DIY comp sales were down 1.1% for the quarter, with traffic down 2% and ticket growth up 1% [24] - International same-store sales grew 9.9% on a constant-currency basis, but reported growth was 4.9% due to foreign exchange headwinds [26] - The company expects DIY and commercial sales trends to modestly improve in Q1 FY25, with better performance expected in Q2 and Q3 [15] Strategy and Industry Competition - The company plans to accelerate international store openings, targeting around 200 openings per year by 2028 [16] - Investments in hubs, mega-hubs, and distribution centers are expected to drive future growth and improve customer service [17] - The company is focused on improving execution, parts availability, and customer service to grow market share domestically and internationally [37][40] Management Commentary on Operating Environment and Future Outlook - Management expects consumer confidence to improve as economic conditions stabilize, which should benefit discretionary categories [10] - The company anticipates average ticket growth will return to historical industry growth rates as inflation normalizes [11] - Foreign currency headwinds are expected to impact FY25 results, with a potential $265 million drag on revenue and $3.64 per share impact on EPS [35] - The company remains committed to driving long-term shareholder value through growth initiatives, robust earnings, and returning excess cash to shareholders [34] Other Important Information - The company repurchased $711 million of stock in Q4 and has $2.2 billion remaining under its share buyback authorization [33] - Free cash flow for Q4 was $723 million, and full-year free cash flow was $1.9 billion [32] - The company expects to open 20+ mega-hubs in FY25, with most openings occurring in the second half of the year [51][98] Q&A Session Summary Question: Timing and expectations for commercial sales growth [43] - Management expects sequential improvement in commercial sales, driven by better store assortments, hub and mega-hub openings, and improved customer service [44] Question: Gross margin outlook and drivers [45] - Merchandising margin improvements and potential inflation in FY25 are expected to drive gross margin growth [46][47] Question: Hurdles to reaccelerating hub growth [49] - The company has rebuilt its pipeline and capabilities, with 70 mega-hubs under construction and plans to open 20+ in FY25 [51] Question: Cadence of commercial sales and national account performance [52] - Commercial sales were consistent across regions, with national accounts improving quarter-over-quarter, particularly in tire-related categories [55] Question: DIY and commercial market growth expectations [58] - DIY market growth has been low-single-digits due to consumer sentiment and lack of retail inflation, while commercial sales have been flat to slightly declining [61][62] Question: Gross margin impact from the 53rd week and FX headwinds [63] - The 53rd week had a noisy impact on margins, while FX headwinds are expected to continue impacting international margins [65] Question: Weekly sales per commercial program and initiatives to improve growth [67] - The company is focused on improving speed of delivery and customer service, leveraging technology and hub/mega-hub strategies [69][70] Question: Non-controllable headwinds to EBIT growth [71] - LIFO credits and FX headwinds are expected to impact EBIT growth in FY25, with $40 million of LIFO credits rolling through the P&L [72][73] Question: Inflation drivers and historical impacts [75] - Inflation is expected to return to historical levels in FY25, driven by product cost increases and technology advancements in parts [77][78] Question: Consumer behavior and historical comparisons [80] - The current consumer environment is unique, with lower-end consumers under pressure, but the company expects maintenance and repair spending to increase as economic conditions improve [81][82] Question: Double-digit EPS growth algorithm and margin structure [85] - The long-term algorithm remains unchanged, with near-term pressure from FX and LIFO headwinds. Gross margin expansion and disciplined SG&A management are key to maintaining operating margins [86][89][90] Question: Competitive pricing impact on average ticket [94] - Competitive pricing has not significantly impacted average ticket growth, which is primarily driven by cost inflation [95][96] Question: Q1 comp expectations and store growth plans [97] - Q1 comps are expected to modestly improve, with store growth plans including 20+ mega-hubs and accelerated international store openings [98][99] Question: Car park dynamics and SG&A growth [101] - The aging car park is a tailwind for the industry, with cars lasting longer and staying on the road. SG&A growth is managed to support growth initiatives while maintaining efficiency [102][106]

The auto parts retailer turned in a ho-hum quarter.Shares of auto parts retailer Autozone (AZO -1.26%) were trading 1.5% lower as of 12:40 p.m. ET Tuesday after reporting misses on both the top and bottom lines for its fiscal fourth quarter. Earlier in the session, the stock had been down by as much as 4.9%Heading into its earnings report Tuesday morning, analysts had forecast Autozone would report a $53.53 per share profit on just over $6.2 billion in sales. Autozone came close to hitting the sales estimat ...

Group 1 - AutoZone, Inc. (NYSE: AZO) remains a favored long-term holding due to its consistent performance as a compounder [1] - The company's story has not changed over time, indicating stability in its business model and growth potential [1] Group 2 - No relevant content available for this section.

Key TakeawaysAutoZone missed fourth-quarter profit and sales estimates as higher costs and weaker consumer discretionary spending hurt results.Domestic same-store sales were up just 0.2%, but they jumped 4.9% internationally.AutoZone added 117 new stores in the quarter. Auto parts retailer AutoZone (AZO) posted worse-than-expected quarterly results Tuesday as costs rose and the company faced a decline in American customers' discretionary spending. However, it got a boost from store expansion. AutoZone repor ...

Core Insights - AutoZone reported revenue of $6.21 billion for the quarter ended August 2024, reflecting a year-over-year increase of 9.1% [1] - The earnings per share (EPS) was $48.11, up from $46.46 in the same quarter last year, but fell short of the consensus estimate of $53.31, resulting in a surprise of -9.75% [1] - The revenue exceeded the Zacks Consensus Estimate of $6.18 billion by 0.37% [1] Financial Performance Metrics - Domestic same-store sales increased by 0.2%, below the average estimate of 1.5% [2] - Total same-store sales in constant currency were up 1.3%, compared to the estimated 1.6% [2] - Total square footage was reported at 49,417 Ksq ft, slightly above the average estimate of 49,231.6 Ksq ft [2] - The total number of AutoZone stores reached 7,353, exceeding the average estimate of 7,330 [2] - Domestic store count was 6,432, slightly above the estimated 6,427 [2] - Square footage per store remained at 6.72 million, matching the average estimate [2] - Net sales for auto parts were $6.09 billion, surpassing the average estimate of $6.08 billion, marking a 9% year-over-year increase [2] - Net sales from all other categories were $112.55 million, exceeding the average estimate of $107.29 million, with an 11.2% year-over-year increase [2] - Domestic commercial sales were $1.66 billion, slightly below the estimated $1.67 billion, but represented a 10.9% increase year-over-year [2] Stock Performance - AutoZone shares have declined by 3.4% over the past month, contrasting with a 1.7% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

| --- | --- | --- | |-------|-------|-------| | | | ani | | | // | | | | LTHE/ | | | | | | 4th Quarter Earnings Release, FY2024 AUTOZONE, INC., © 2024 ALL RIGHTS RESERVED. 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," "strat ...