AutoZone (AZO, Financial) has enhanced its board of directors by appointing Claire Rauh McDonough, who currently holds the position of Chief Financial Officer at Rivian (RIVN). This appointment brings the total number of directors on AutoZone's board to 10, signaling a strategic addition of financial expertise from the electric vehicle industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for AutoZone Inc (AZO, Financial) is $3,826.73 with a high estimate of $4,192.00 and a low estimate of $2,896.05. The average target implies an upside of 4.78% from the current price of $3,652.11. More detailed estimate data can be found on the AutoZone Inc (AZO) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, AutoZone Inc's (AZO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AutoZone Inc (AZO, Financial) in one year is $3400.17, suggesting a downside of 6.9% from the current price of $3652.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AutoZone Inc (AZO) Summary page.
AZO Key Business Developments
Release Date: March 04, 2025
- Total Sales Growth: 2.4% increase to $4 billion.
- Earnings Per Share (EPS): Decreased 2.1% to $28.29.
- Same-Store Sales: Total company up 2.9%; Domestic up 1.9%; International up 9.5% on a constant currency basis.
- Domestic Commercial Sales Growth: Increased 7.3%.
- International Sales Impact: 1,900 basis points currency headwind, resulting in an unadjusted negative 8.2% International comp.
- Gross Margin: 53.9%, flat compared to last year.
- Operating Expenses: Increased 6.4%, with SG&A deleveraging 134 basis points.
- Net Income: $488 million, down 5.3% from last year.
- Free Cash Flow: $291 million, up from $179 million last year.
- Store Openings: 28 net new domestic stores; 17 new international stores, totaling 949 international locations.
- Share Repurchase: $330 million of stock repurchased, with $1.3 billion remaining under authorization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AutoZone Inc (AZO, Financial) reported a 2.4% increase in total sales for the quarter, with Domestic same-store sales growing by 1.9%.
- International same-store sales increased by 9.5% on a constant currency basis, indicating strong performance outside the US.
- The company's Domestic Commercial sales grew by 7.3%, showing significant improvement from the previous quarter.
- AutoZone Inc (AZO) opened 28 net domestic stores and 17 new international stores, demonstrating continued expansion.
- The company is investing over $1 billion in CapEx to drive strategic growth priorities, including store growth and supply chain improvements.
Negative Points
- Earnings per share decreased by 2.1% for the quarter, impacted by foreign exchange headwinds.
- The company faced a significant currency headwind, with a $91 million impact on sales and a $1.22 per share drag on EPS.
- Operating expenses increased by 6.4%, leading to a 134 basis point deleverage in SG&A as a percentage of sales.
- The Domestic DIY business showed only a marginal improvement with a 0.1% comp increase, indicating challenges in this segment.
- The company anticipates continued pressure on discretionary sales until economic conditions improve for consumers.
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