AZO Earnings Prediction
The chart below shows how AZO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AZO sees a +0.80% change in stock price 10 days leading up to the earnings, and a -0.87% change 10 days following the report. On the earnings day itself, the stock moves by -1.01%. This data can give you a slight idea of what to expect for the next quarter's release.
AZO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.95B
2.41%
-7.66%
Gross Margin
53.86%
-0.06%
1.62%
Operating Margin
17.88%
-7.17%
-9.01%
Net Margin
12.35%
-7.49%
-6.44%
EPS
28.29
-2.08%
-13.01%
No Data Available
AZO Earnings Analysis
Autozone Inc Corporation (AZO.N) Earnings Conference Call
Positive
Sales Growth Trend: Total sales grew 2.4% to $4 billion, indicating a positive trend in overall revenue.
Domestic Sales Resilience: Domestic same-store sales increased by 1.9%, showing resilience in the domestic market despite challenges.
International Sales Growth: International same-store sales rose 9.5% on a constant currency basis, reflecting strong performance in international markets.
Commercial Sales Growth: Domestic Commercial sales grew 7.3%, significantly improving from 3.2% growth in the previous quarter, indicating strong demand in the commercial sector.
Domestic Store Expansion: The company opened 28 net new domestic stores, demonstrating commitment to expansion and growth.
Supply Chain Enhancement: The introduction of new distribution centers in California and Virginia is expected to enhance supply chain efficiency and customer service.
Free Cash Flow Increase: Free cash flow increased to $291 million, up from $179 million in the previous year, showcasing strong cash generation capabilities.
Strategic Growth Investment: The company plans to invest over $1 billion in capital expenditures to drive strategic growth priorities, indicating confidence in future performance.
Solid Gross Margin: The gross margin remained solid at 53.9%, reflecting effective cost management and pricing strategies.
Shareholder Cash Return: The company is committed to returning cash to shareholders, having repurchased $330 million of stock during the quarter.
Negative
Earnings Miss Reported: AutoZone, Inc. misses on earnings expectations with reported EPS of $28.29, below the expected $29.05.
EBIT Decline Analysis: Total company EBIT decreased by 4.9%, indicating a decline in profitability compared to the previous year.
Foreign Exchange Impact: The company faced a significant foreign exchange headwind, with a $91 million impact on sales and a $30 million impact on EBIT due to currency fluctuations.
Low Same-Store Sales Growth: Domestic same-store sales growth was only 1.9%, which is relatively low and indicates potential challenges in the retail environment.
DIY Segment Traffic Decline: The DIY segment showed a decline in traffic, with a 1% decrease in transaction count, suggesting reduced customer engagement.
Discretionary Sales Decline: Discretionary merchandise sales were down, comprising only 16% of the sales mix, indicating a cautious consumer spending environment.
DIY Sales Decline: The last week of the quarter saw a significant drop in DIY sales, with a comp decline of almost 7%, attributed to severe winter weather affecting customer traffic.
Operating Expenses Impact: Operating expenses increased by 6.4%, leading to a deleveraging of SG&A as a percentage of sales, which could pressure margins going forward.
Rising Interest Expense Impact: Interest expense rose by 6% due to higher debt levels, which could impact future profitability.
Currency Impact on Revenues: The company anticipates continued foreign currency headwinds, projecting a $356 million impact on revenues and a $4.82 impact on full-year EPS if current rates persist.
AZO FAQs
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AZO Earning Call Sentiment
AutoZone, Inc. (NYSE:AZO) Q2 2025 Earnings Call Transcript
AZO.N
-0.13%Positive
Despite strong international same-store sales and a positive outlook on store expansion and technology investments, the earnings call reveals several concerns. Financial performance was impacted by foreign exchange and increased debt levels, resulting in decreased EPS and EBIT. The Q&A section highlights uncertainties regarding tariffs, inflation, and SG&A expenses, with management responses lacking clarity on some issues. These mixed signals suggest a neutral sentiment, as positive growth strategies are offset by financial challenges and market uncertainties.
