Core Viewpoint - AutoZone, Inc. is expected to report a slight decrease in quarterly earnings and an increase in revenue compared to the previous year [1][2]. Financial Performance - Analysts anticipate AutoZone's earnings per share (EPS) for the first quarter to be $32.51, a decrease from $32.52 in the same period last year [1]. - The consensus estimate for quarterly revenue is $4.64 billion, up from $4.28 billion reported last year, reflecting a growth of approximately 8.4% [1]. - In the fourth quarter, AutoZone reported a sales growth of 6.9% but experienced a 7.8% decline in operating profit, which was $1.2 billion [2]. - The company's EPS for the fourth quarter decreased to $48.71 from $51.58, marking a 5.6% decline [2]. Stock Performance - AutoZone's shares fell by 1.5%, closing at $3,766.96 on the preceding Monday [2]. Analyst Ratings - Goldman Sachs upgraded AutoZone from Neutral to Buy, adjusting the price target from $4,090 to $4,262 [4]. - BMO Capital maintained an Outperform rating and raised the price target from $4,100 to $4,600 [4]. - Truist Securities maintained a Buy rating, lowering the price target from $4,504 to $4,499 [4]. - Raymond James kept a Strong Buy rating, reducing the price target from $4,900 to $4,800 [4]. - Morgan Stanley maintained an Overweight rating and increased the price target from $4,000 to $4,700 [4].

Core Viewpoint - AutoZone, Inc. is experiencing growth across its commercial, DIY, and international segments, with a positive outlook reflected in the upward trend of its stock price target by analysts [2][3][6] Segment Contributions - The commercial segment, particularly the Do-It-For-Me (DIFM) market, is showing structural and sustainable growth [3][6] - The DIY segment remains stable, while international expansion, especially in Mexico, provides diversified growth opportunities [3][6] Financial Performance and Projections - The consensus price target for AutoZone's stock has increased from $4,090.07 a year ago to $4,655 last quarter, indicating growing analyst confidence [2][6] - Despite short-term margin challenges due to LIFO accounting methods, AutoZone's underlying profitability is strong, with anticipated earnings per share (EPS) growth expected by fiscal year 2027 [4][6] - AutoZone is expected to surpass earnings estimates in its upcoming quarterly report, suggesting favorable conditions for an earnings beat [5]

Group 1 - Major earnings reports are scheduled for next week, including Broadcom and Costco on Thursday, and Adobe and Synopsys on Wednesday [1] - Tuesday is expected to be the busiest day with over 10 companies reporting, including AutoZone and Ferguson Enterprises [1]

Core Viewpoint - AutoZone is positioned as a strong player in the automotive replacement parts market, with significant growth potential across various segments, particularly in the commercial and international markets [2][3]. Company Overview - AutoZone, Inc. is a leading retailer and distributor of automotive replacement parts and accessories in the United States, operating through commercial, DIY, and international segments [1]. - Competitors include O'Reilly Automotive and Advance Auto Parts [1]. Earnings Expectations - The company is set to release its quarterly earnings on December 9, 2025, with Wall Street estimating an earnings per share (EPS) of $32.35 and projected revenue of approximately $4.64 billion [2]. - The commercial segment, especially the Do-It-For-Me (DIFM) market, is experiencing structural and sustainable growth [2]. Analyst Ratings and Market Sentiment - JP Morgan analyst Christopher Horvers maintains an Overweight rating on AutoZone, citing resilient demand and potential for improved long-term earnings [3]. - Horvers has increased his estimates and set a price target of $4,850, noting no structural slowdown in DIY demand despite early-quarter fluctuations [3]. Financial Metrics - AutoZone has a price-to-earnings (P/E) ratio of approximately 25.60, indicating the market's valuation of its earnings [4]. - The price-to-sales ratio stands at about 3.39, reflecting the company's market value relative to its revenue [4]. - The enterprise value to sales ratio is around 4.02, showing the company's total valuation compared to its sales [4]. - The enterprise value to operating cash flow ratio is approximately 24.41, suggesting how the company's valuation compares to its cash flow from operations [4]. - AutoZone's earnings yield is about 3.91%, providing insight into the return on investment for shareholders [4]. - The company has a debt-to-equity ratio of approximately -3.57, indicating a higher level of debt compared to its equity [4]. - The current ratio is around 0.88, suggesting the company's ability to cover its short-term liabilities with its short-term assets [4]. Growth Potential - The upcoming earnings report could significantly impact AutoZone's stock price, with potential upward movement if results exceed expectations [4].

Core Viewpoint - Analysts project that AutoZone (AZO) will report quarterly earnings of $32.22 per share, reflecting a year-over-year decline of 0.9%, while revenues are expected to increase by 8.3% to $4.64 billion [1]. Earnings Projections - The consensus EPS estimate has been adjusted upward by 0.1% over the past 30 days, indicating a reassessment by analysts [1][2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [2]. Revenue Estimates - Analysts estimate 'Net Sales- Auto Parts' will reach $4.61 billion, a 9.7% increase from the previous year [4]. - 'Net Sales- All Other' is projected at $85.83 million, reflecting a 7.4% year-over-year increase [4]. - 'Net Sales- Domestic Commercial sales' is expected to be $1.27 billion, marking a 12.7% rise from the prior year [4]. Store Metrics - Total square footage is estimated to be 52,372 thousand square feet, up from 49,781 thousand square feet a year ago [5]. - The total number of AutoZone stores is projected to be 7,711, compared to 7,387 in the same quarter last year [5]. - The number of domestic stores is expected to reach 6,659, an increase from 6,455 a year ago [6]. Performance Indicators - Analysts predict 'Square footage per store' will be 6.80 million, up from 6.74 million in the same quarter last year [6]. - The consensus for 'Sales per average square foot' stands at $89.16 thousand, compared to $85.00 thousand a year ago [6]. New Store Openings - The number of stores opened in Brazil is expected to be 6, up from 5 last year [7]. - In Mexico, the number of new stores is projected to reach 7, compared to 6 in the same quarter last year [7]. - Domestic store openings are estimated at 35, an increase from 23 in the same quarter last year [8]. Market Performance - Over the past month, AutoZone shares have returned +4.4%, outperforming the Zacks S&P 500 composite's +0.1% change [8].

As we head into FY26, there is a distinctly separate perception of AutoZone ( AZO ) between the market and the actual fundamental picture. Despite commercial momentum picking up, DIY continuing to do well, and international doing better thanI have over 13 years of diverse financial analysis experience across various sectors, including Auto, Industrials, and IT. Worked in a Ford and Caterpillar treasury, and managed Investor relations and Strategic finance of a listed IT company of market cap ~USD 2.5bn. My ...

Core Insights - There is a significant divergence between market perception and the actual fundamental performance of AutoZone (AZO) as FY26 approaches [1] - Commercial momentum is increasing, DIY segments are performing well, and international operations are showing improvement [1] Company Performance - AutoZone is experiencing positive trends in commercial momentum and DIY sales, indicating strong operational performance [1] - International operations are outperforming expectations, contributing to the overall growth of the company [1] Market Perception - The market's perception of AutoZone does not align with the underlying fundamentals, suggesting potential mispricing or misunderstanding among investors [1]

AutoZone, Inc. (NYSE:AZO) shares were little changed Wednesday as investors digested a fresh bullish call from JP Morgan.Analyst Christopher Horvers stuck with an Overweight rating and higher estimates, citing resilient demand and improving long-term earnings power.Horvers reiterated the rating, with a price forecast of $4,850.Also Read: AutoZone’s Domestic ‘Do It For Me’ Business Driving Market Share GainsHorvers said he raised near-term estimates after stronger comparable performance, though lower gross m ...

AutoZone, Inc. (NYSE:AZO) shares were little changed Wednesday as investors digested a fresh bullish call from JP Morgan.Analyst Christopher Horvers stuck with an Overweight rating and higher estimates, citing resilient demand and improving long-term earnings power.Horvers reiterated the rating, with a price forecast of $4,850.Also Read: AutoZone’s Domestic ‘Do It For Me’ Business Driving Market Share GainsHorvers said he raised near-term estimates after stronger comparable performance, though lower gross m ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Past performance is not an indicator of future performance. This post is illustrative and educational ...