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AutoZone (AZO) to Report Q3 Earnings: What's in the Cards?

AutoZone AZO is slated to release third-quarter fiscal 2024 results on May 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $35.75 and $4.29 billion, respectively.

The Zacks Consensus Estimate for AZO’s fiscal third-quarter earnings per share has moved up 25 cents in the past 60 days. The bottom-line projection indicates year-over-year growth of 4.78%. The Zacks Consensus Estimate for quarterly revenues implies a 4.93% rise from the prior-year level.

The automotive parts retailer posted earnings of $28.89 per share for second-quarter fiscal 2024, which improved 17.2% from the prior-year figure and beat the Zacks Consensus Estimate of $26.08. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 7.69%. This is depicted in the graph below:

AutoZone, Inc. Price and EPS Surprise

AutoZone, Inc. Price and EPS Surprise
AutoZone, Inc. Price and EPS Surprise

AutoZone, Inc. price-eps-surprise | AutoZone, Inc. Quote

What Does Our Model Say?

Our proven model predicts a likely earnings beat for AutoZone this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here.

Earnings ESP: AutoZone has an Earnings ESP of +0.81%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AZO currently carries a Zacks Rank #2.

Things to Note

AutoZone has been generating record sales for 34 consecutive years. For fiscal 2023, sales were $17.5 billion, up 7.4% year over year. The momentum is expected to have continued in the to-be-reported quarter due to solid strength across its DIY, as well as commercial business amid the expansion of coverage and parts availability.

The company’s omni-channel efforts to improve customer shopping experience have been reaping profits. The ramp-up of e-commerce efforts, including ship-to-home next day, buy online, pick-up in stores and commercial customer ordering, are likely to have driven traffic to the company’s online site and helped it deliver sizzling growth.

Inventory assortment improvements, technological advancements, fast delivery and high-quality products, the solid reputation of the Duralast brand across the professional customer base, maintenance of competitive pricing and greater engagement from store-operating teams have been driving the company’s growth. Strength across DIY and commercial business and the company’s omni-channel efforts are likely to have bolstered AutoZone’s performance in the to-be-reported quarter.

Key Predictions for Other Players

Modine Manufacturing Company MOD has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The company is scheduled to post fourth-quarter fiscal 2024 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.

MOD surpassed earnings estimates in each of the trailing four quarters, the average surprise being 51.53%.

Advance Auto Parts, Inc. AAP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The company is slated to post first-quarter 2024 earnings on May 29. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share.

AAP missed earnings estimates in each of the trailing four quarters, the average negative surprise being 148.19%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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