AutoZone(US:AZO) ZACKSยท2024-10-24 16:31Core Viewpoint - AutoZone's recent earnings report showed mixed results, with earnings per share missing expectations while net sales exceeded estimates, indicating potential challenges ahead for the company [2][5]. Financial Performance - AutoZone reported earnings of $48.11 per share for Q4 fiscal 2024, a 3.5% increase year over year, but below the Zacks Consensus Estimate of $53.31 per share [2]. - Net sales grew 9% year over year to $6.20 billion, surpassing the Zacks Consensus Estimate of $6.18 billion [2]. - Domestic commercial sales reached $1.66 billion, up from $1.50 billion in the prior year, while domestic same-store sales increased by 0.2% [2]. - Gross profit rose to $3.26 billion from $3 billion in the prior year, and operating profit increased by 5.7% year over year to $1.29 billion [2]. Store Expansion and Inventory - During the quarter, AutoZone opened 68 new stores in the U.S., 31 in Mexico, and 18 in Brazil, bringing the total store count to 7,353 as of August 31, 2024 [3]. - Inventory increased by 6.8% year over year, with inventory per store at $837,000 compared to $807,000 a year ago [3]. Financial Position and Share Repurchases - As of August 31, 2024, AutoZone had cash and cash equivalents of $298.2 million, up from $277.1 million a year earlier, while total debt rose to $9 billion from $7.67 billion [4]. - The company repurchased 244,000 shares for $710.6 million during the fiscal fourth quarter at an average price of $2,915 per share, with $2.2 billion remaining under its current share repurchase authorization [4]. Market Sentiment and Estimates - There has been a downward trend in fresh estimates for AutoZone, with the consensus estimate shifting down by 6.37% [5]. - AutoZone currently holds a subpar Growth Score of D and a Momentum Score of F, but a grade of B on the value side, resulting in an aggregate VGM Score of C [6]. - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [6].