AutoZone Q4 profit beats estimates on store expansion

By Reuters News


Overview

  • US automotive parts retailer's Q4 sales grew 5.6% yr/yr but missed analyst expectations

  • Q4 adjusted EPS beat analyst expectations

  • Company repurchased $697.5 mln in shares during the quarter


Outlook

  • AutoZone expects sales growth in fiscal 2027

  • Company expects sales in all three countries to accelerate in the new fiscal year


Result Drivers

  • GROSS MARGIN BOOST - Co said Q4 gross margin rose due to tariff refunds and net non-cash LIFO impact

  • STORE EXPANSION - Co opened 175 new stores in Q4, including 16 Mega Hub stores in the U.S.

  • COMMERCIAL SALES GROWTH - Domestic commercial sales grew 8.6% yr/yr, outpacing overall sales growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Miss

$6.59 bln

$6.72 bln (20 Analysts)

Q4 EPS

Beat

$56.05

$54.44 (22 Analysts)

Q4 Like-For-Like Sales Growth

1.50%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

  • Wall Street's median 12-month price target for AutoZone, Inc. is $3,784.56, about 35% above its September 21 closing price of $2,803.25

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Sept 22 - RV maker Thor Industries misses Q4 profit estimates on weak demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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