Core Viewpoint - AutoZone reported a mixed performance in its Q3 fiscal 2024 earnings, with earnings per share exceeding estimates but net sales falling short of expectations [2] Financial Performance - Earnings per share for Q3 fiscal 2024 were $36.69, a 7.5% increase year over year, surpassing the Zacks Consensus Estimate of $35.72 [2] - Net sales reached $4,235.5 million, reflecting a 3.5% year-over-year growth, but missed the Zacks Consensus Estimate of $4,292 million [2] - Domestic commercial sales increased to $1.14 billion from $1.11 billion in the prior year, while domestic same-store sales remained flat [2] - Gross profit rose to $2.26 billion from $2.14 billion in the previous year, and operating profit increased by 4.8% year over year to $900 million [2] Store Expansion and Inventory - AutoZone opened 32 new stores in the U.S., 12 in Mexico, and one in Brazil, bringing the total store count to 7,236 as of May 4, 2024 [3] - Inventory increased by 8% year over year, with inventory per store at $851,000 compared to $810,000 a year ago [3] Financial Position and Share Repurchases - As of May 4, 2024, AutoZone had cash and cash equivalents of $275.4 million, down from $277.1 million as of August 26, 2023 [4] - Total debt increased to $8.5 billion from $7.67 billion as of August 26, 2023 [4] - The company repurchased 242,000 shares for $737.7 million during the fiscal third quarter at an average price of $3,036 per share, with $1.4 billion remaining under its current share repurchase authorization [4] Market Sentiment and Outlook - Recent estimates for AutoZone have shown a downward trend, indicating a shift in market sentiment [5][7] - The stock has an average Growth Score of C, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for value investment strategy [6] - AutoZone holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [7]

Core Viewpoint - AutoZone has announced an additional stock repurchase authorization of $1.5 billion, bringing the total authorized share repurchases to $39.2 billion since the program's inception, indicating a strong commitment to returning value to shareholders [1][8]. Financial Performance - In the last reported quarter, AutoZone repurchased shares worth $735 million, with over $1.4 billion remaining under share repurchase authorization [1]. - The company's annualized cash flow growth rate has been 11.8% over the past 3-5 years, significantly higher than the industry average of 2.7% [1]. - AutoZone has a 5-year average return on capital of 71%, showcasing its financial efficiency [1]. Stock Performance - Over the last 10 years, AutoZone's stock price has increased by approximately 450%, and by 3,600% over the last 20 years [3]. - The stock reached an all-time high of $3,256 per share on March 22, 2024, and is currently trading at about a 9% discount to this record high [5]. Market Trends - The average age of U.S. vehicles has reached a record 12.6 years in 2024, which is expected to drive demand for automotive repairs and maintenance, benefiting AutoZone [6]. - There are over 110 million vehicles in the prime range for aftermarket service (6 to 14 years old), representing nearly 38% of the fleet, projected to grow to 40% by 2028 [6]. Strategic Initiatives - AutoZone is enhancing inventory distribution by bringing stock closer to customers, which is expected to improve efficiency and drive growth [7]. - The company operates 6,364 stores in the U.S., 763 in Mexico, and 109 in Brazil, with 92% of stores incorporating a commercial program to capture more market share [7]. Debt and Valuation Concerns - AutoZone's total debt increased to $8.50 billion as of May 4, 2024, up from $7.67 billion in August 2023 and $7.34 billion in May 2023 [8]. - The current price/earnings ratio of 18.39X forward earnings is higher than its five-year median, indicating a potentially pricey valuation [10]. Earnings Estimates - For fiscal 2024, the Zacks Consensus Estimate implies a 6% growth in sales and a 14.5% growth in EPS year-over-year [13]. - The consensus for fiscal 2025 indicates another 3% growth in sales and 8% growth in earnings year-over-year [13].

MEMPHIS, Tenn., June 19, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), today, announced its Board of Directors authorized the repurchase of an additional $1.5 billion of the Company's common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone's Board of Directors has authorized $39.2 billion in share repurchases. "AutoZone's continuing ability to generate strong free cash flow allows us to incre ...

MEMPHIS, Tenn., June 19, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), today, announced its Board of Directors authorized the repurchase of an additional $1.5 billion of the Company's common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone's Board of Directors has authorized $39.2 billion in share repurchases. "AutoZone's continuing ability to generate strong free cash flow allows us to incre ...

AutoZone (AZO) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this auto parts retailer have returned -3%, compared to the Zacks S&P 500 composite's +4.2% change. During this period, the Zacks Automotive - Retail and Wholesale - Parts industry, which AutoZone falls in, has lost 3.2%. The key question now is: What could be the stock's future direction? Al ...

For Immediate Release Chicago, IL – June 12, 2024 – Today, Zacks Equity Research discusses O'Reilly Automotive (ORLY) and AutoZone (AZO) Industry: Auto Parts Link: https://www.zacks.com/commentary/2286428/2-auto-parts-retailers-worth-watching-on-industry-strength The Zacks Automotive-Retail and Wholesale-Parts industry is benefiting from ongoing vehicle demand and the increasing age of vehicles. Additionally, the rise of technologically advanced vehicles has increased consumer dependence on professional ser ...

The Zacks Automotive-Retail and Wholesale-Parts industry is benefiting from ongoing vehicle demand and the increasing age of vehicles. Additionally, the rise of technologically advanced vehicles has increased consumer dependence on professional services, creating new opportunities for industry players. To capitalize on these opportunities, auto parts retailers need to devise comprehensive strategies. Effective cost management is crucial in this dynamic market environment. Noteworthy industry participants wo ...

Cash-cow stocks represent a distinctive category in the stock market that retail investors tend to underappreciate. But what are cash-cow stocks?As the name suggests, cash-cow stocks generate substantial, predictable and recurring free cash flow per share. This metric is generally more telling than earnings per share because it provides a clearer picture of the actual cash available for quick deployment, omitting non-cash factors such as depreciation. Free cash flow’s consistency and reliability help invest ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended May 4, 2024 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to ________. Commission file number 1-10714 AUTOZONE, INC. (Exact name of registrant as specified in its charter) Nevada 62-1482048 (State or othe ...

MEMPHIS, Tenn., June 05, 2024 (GLOBE NEWSWIRE) -- AutoZone (NYSE:AZO) recognized 17 of its top suppliers at their annual Vendor Summit. The awards honor companies that provided exceptional performance and demonstrated a strong commitment to customer satisfaction during the past year. AutoZone awarded JK Fenner the 2024 Vendor of the Year, the highest vendor honor from the company. JK Fenner is a leader in Mechanical Power Transmission products and was praised for providing outstanding customer service, prio ...