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]

Core Viewpoint - AutoZone, Inc. is expected to report an increase in quarterly earnings and revenue in its upcoming financial results, indicating positive growth trends for the company [1]. Financial Performance - AutoZone is projected to report quarterly earnings of $28.98 per share, an increase from $28.89 per share in the same period last year [1]. - The company anticipates quarterly revenue of $3.98 billion, compared to $3.86 billion a year earlier [1]. - In the fiscal first quarter, AutoZone reported earnings per share of $32.52, which was below the expected $33.76 [2]. Stock Performance and Analyst Ratings - AutoZone shares closed at $3,493.01, reflecting a gain of 1.4% [2]. - Barclays analyst Matthew McClintock raised the price target for AutoZone from $3,024 to $3,585, maintaining an Overweight rating [3]. - Argus Research analyst Bill Selesky increased the price target from $3,560 to $3,678 while maintaining a Buy rating [3]. - TD Cowen analyst Max Rakhlenko raised the price target from $3,450 to $3,800, also maintaining a Buy rating [3]. - BMO Capital analyst Tristan Thomas-Martin initiated coverage with an Outperform rating and a price target of $3,700 [3]. - Wells Fargo analyst Zachary Fadem increased the price target from $3,450 to $3,750 while maintaining an Overweight rating [3].

Core Insights - AutoZone is a leading player in the automotive parts retail industry with over 7,000 stores globally, showing strong Moneyball scores that indicate potential for further growth despite its premium valuation [1][11]. Financial Performance - AutoZone's Superscore is 74/100, with an exceptional Financial score of 93/100, reflecting strong overall business fundamentals [3][10]. - The company generated $1.9 billion in free cash flow over the past year, supported by steady revenue growth and excellent margins [6]. - AutoZone's GARP score of 88/100 suggests attractive growth potential relative to its stock valuation, with a 42% reduction in diluted share count over the past decade, enhancing per-share metrics [7][10]. Efficiency Metrics - The Return on Unleveraged Net Tangible Assets (ROUNTA) is 95.4%, indicating exceptional efficiency in generating cash flow from its asset base [5][10]. Technology and Innovation - AutoZone's Technology score is 55/100 and AI score is 37/100, indicating areas for improvement in digital transformation, although it ranks higher than peers Advance Auto Parts and O'Reilly Automotive in these metrics [8][10]. Valuation and Market Position - AutoZone shares trade at 22.7 times trailing earnings, the highest multiple in the past decade, necessitating the company to prove its ability to sustain these Moneyball scores and navigate industry disruptions [11].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on AutoZone (AZO), and highlights the potential misalignment of brokerage firms' interests with those of retail investors [1][4]. Group 1: Brokerage Recommendations - AutoZone has an average brokerage recommendation (ABR) of 1.48, indicating a consensus between Strong Buy and Buy, based on 26 brokerage firms [2]. - Out of the 26 recommendations, 20 are Strong Buy and one is Buy, which accounts for 76.9% and 3.9% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies show they often fail to guide investors effectively towards stocks with high price appreciation potential [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [5]. Group 3: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks into five groups based on earnings estimate revisions, which is a more effective indicator of near-term stock price performance compared to ABR [7][10]. - The Zacks Rank is updated more frequently than ABR, reflecting timely changes in earnings estimates, while ABR may not always be current [11]. Group 4: Current Earnings Estimates for AutoZone - The Zacks Consensus Estimate for AutoZone's current year earnings has declined by 0.1% to $152.94, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - Due to the recent changes in consensus estimates and other related factors, AutoZone has received a Zacks Rank of 4 (Sell), suggesting caution despite the Buy-equivalent ABR [13].

Core Viewpoint - AutoZone is set to report its earnings on March 4, 2025, with expectations of a slight increase in EPS and revenue compared to the previous year [2][3]. Company Performance - AutoZone's stock closed at $3,427.55, reflecting a +0.22% change from the previous day, which is lower than the S&P 500's gain of 0.67% [1]. - Over the past month, AutoZone shares have appreciated by 5.19%, underperforming the Retail-Wholesale sector's gain of 7.15% but outperforming the S&P 500's gain of 2.07% [1]. Earnings Estimates - The upcoming earnings report is expected to show EPS of $29.11, a 0.76% increase year-over-year, and net sales of $3.98 billion, up 3.13% from the prior year [2]. - Full-year estimates project earnings of $152.94 per share and revenue of $18.79 billion, representing year-over-year changes of +4.65% and +1.63%, respectively [3]. Analyst Sentiment - Recent changes in analyst estimates indicate a favorable outlook on AutoZone's business health and profitability [3]. - The consensus EPS projection has moved 0.09% lower in the past 30 days, and AutoZone currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - AutoZone is trading with a Forward P/E ratio of 22.36, which is below the industry average of 25.02, indicating a discount compared to its peers [6]. - The company has a PEG ratio of 1.89, aligning with the average PEG ratio for the Automotive - Retail and Wholesale - Parts industry [7]. Industry Context - The Automotive - Retail and Wholesale - Parts industry is ranked 66 in the Zacks Industry Rank, placing it in the top 27% of over 250 industries [8].

Group 1 - AutoZone's stock closed at $3,459, reflecting a +0.78% change from the previous trading day, outperforming the S&P 500's gain of 0.72% [1] - Over the past month, AutoZone's stock has risen by 4.21%, lagging behind the Retail-Wholesale sector's gain of 6.17% but outperforming the S&P 500's gain of 1.02% [1] Group 2 - AutoZone is expected to report earnings of $29.11 per share on March 4, 2025, representing a year-over-year growth of 0.76%, with projected revenue of $3.98 billion, a 3.13% increase compared to the previous year [2] - For the full year, analysts expect earnings of $152.94 per share and revenue of $18.79 billion, marking changes of +4.65% and +1.63% respectively from last year [3] Group 3 - Recent changes to analyst estimates for AutoZone indicate a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks AutoZone at 3 (Hold), with a recent 0.09% decrease in the consensus EPS estimate [6] Group 4 - AutoZone has a Forward P/E ratio of 22.44, which is lower than the industry average of 24.31, indicating that AutoZone is trading at a discount compared to its peers [7] - The company has a PEG ratio of 1.9, which is in line with the average PEG ratio of 1.9 for the Automotive - Retail and Wholesale - Parts industry [8] Group 5 - The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector, holding a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [9]

MEMPHIS, Tenn., Feb. 03, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), the leading retailer and distributor of automotive replacement parts and accessories in the Americas, will release results for its second quarter ended Saturday, February 15, 2025, before market open on Tuesday, March 4, 2025. Additionally, the Company will host a one-hour conference call on Tuesday, March 4, 2025, beginning at 10:00 a.m. (ET), to discuss the results of the quarter. This call is being webcast and can be accessed, ...

Group 1: Company Performance - AutoZone's stock closed at $3,372.82, showing a +1.21% change from the previous day's closing price, outperforming the S&P 500 which fell by 1.46% [1] - The stock has increased by 2.8% over the past month, surpassing the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 1.08% [1] Group 2: Financial Projections - AutoZone's projected earnings per share (EPS) for the upcoming release is $29.11, indicating a 0.76% increase from the same quarter last year, with expected revenue of $3.98 billion, a 3.13% increase year-over-year [2] - For the entire fiscal year, earnings are projected at $152.94 per share and revenue at $18.79 billion, reflecting changes of +4.65% and +1.63% respectively from the prior year [3] Group 3: Analyst Estimates and Rankings - Recent analyst estimate revisions indicate optimism about AutoZone's business and profitability, with a Zacks Rank of 3 (Hold) [5][3] - The Zacks Rank system has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [5] Group 4: Valuation Metrics - AutoZone is currently trading at a Forward P/E ratio of 21.79, which is lower than the industry average of 24.18, suggesting a comparative discount [6] - The company has a PEG ratio of 1.84, aligning with the industry average, which also indicates a balanced valuation considering expected earnings growth [7] Group 5: Industry Context - The Automotive - Retail and Wholesale - Parts industry ranks in the top 11% of all industries, with a Zacks Industry Rank of 26 [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for AutoZone within its industry [8]

Company Performance - AutoZone's stock closed at $3,373.57, reflecting a +1.43% increase, outperforming the S&P 500's gain of 0.53% on the same day [1] - Over the past month, AutoZone's stock has risen by 1.3%, which is below the Retail-Wholesale sector's increase of 2.71% and the S&P 500's increase of 2.69% [1] Upcoming Earnings - AutoZone is expected to report an EPS of $29.11, representing a 0.76% increase from the same quarter last year [2] - The consensus estimate for revenue is $3.98 billion, indicating a 3.13% increase from the prior-year quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $152.94 per share and revenue at $18.79 billion, reflecting changes of +4.65% and +1.63% respectively from the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for AutoZone are important as they reflect changes in short-term business dynamics, with positive revisions indicating analyst optimism [4] - The Zacks Rank system, which assesses these estimate changes, has a strong track record, with 1 rated stocks averaging a +25% annual return since 1988 [5][6] Valuation Metrics - AutoZone's Forward P/E ratio is currently 21.75, which is lower than the industry's Forward P/E of 23.22, suggesting a valuation discount [7] - The company has a PEG ratio of 1.84, aligning with the average PEG ratio of the Automotive - Retail and Wholesale - Parts industry [8] Industry Context - The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 14, placing it in the top 6% of over 250 industries [9]

Core Insights - Nikolaos Sismanis has a BSc in Banking and Finance and over five years of experience as an equities analyst focusing on growth and income stocks with high expected return potential and solid margin of safety [1] - He is a contributing author to the investing group Wheel of Fortune, which shares actionable trading ideas across various asset classes, sectors, and industries [1] - The service aims to provide a comprehensive resource for investment and portfolio ideas while educating a community of subscribers [1] Service Features - The Funds Macro Portfolio is designed for less active investors and includes only ETFs and CEFs [1] - The Single Macro Portfolio focuses on single equity for more active investors [1] - The service also offers educational content and a live chat room for discussions among investors [1]