AutoZone reports fiscal third-quarter earnings May 24

What's Happening With AZO View more about AZO >

Auto parts retailer AutoZone (AZO) will report fiscal third-quarter numbers on May 24. The company will post its quarterly numbers before the market opens, with analysts forecasting earnings of $10.96 per share. The stock was strong during the first few months of the year, but has been in a weak downward trend over the last two months, and is currently up 2.0% on the year.

Technical Analysis

AZO was recently trading at $756.52, down $53.48 from its 12-month high and $93.82 above its 12-month low. Technical indicators for AZO are neutral and the stock is in a weak downward trend. The stock has recent support above $742.75 and has recent resistance below $782.00. Of the 17 analysts who cover the stock, six rate it a “strong buy”, and 11 rate it a “hold”. The stock receives S&P Capital IQ’s 3 STARS “Hold” ranking.

Analysts' Thoughts

Investors may want to be a little cautious of AutoZone ahead of this week’s earnings report. One of the company’s biggest competitors, Advance Auto Parts (AAP) has already reported its quarterly results, and the numbers were weaker than expected, driving shares lower. The good news is that the disappointing AAP report has already impacted AZO shares, so an earnings miss would not have such a huge impact as negativity has already been priced into the stock. Genuine Parts (GPC) reported back in April, with positive numbers, so the outlook is a bit mixed for the sector as a whole. I remain upbeat on auto parts retailers, as strength in the underlying auto industry should keep strength in parts retailers as well. At first glance, AutoZone’s high stock price may be a deterrent to a lot of investors, but with the company generating such high earnings per share, the valuation is attractive, with a P/E of just 19.8. The valuation should prevent any huge post-earnings selloff considering the stock has already moved lower in sympathy to the AAP report, but also should allow for a nice bounce if earnings are better than expected.

AZO
About AutoZone Inc.

AutoZone is the premier seller of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in the United States. The company derives an increasing proportion of its sales from domestic commercial customers, just over 20% in fiscal 2018, and has a growing presence in Mexico and Brazil. AutoZone had 6,202 stores in the U.S., Mexico, and Brazil as of the end of fiscal 2018.

  • Last Price:
    $1,122.65
  • Previous Close:
    $1,126.00
  • Change:
    $-3.35 (-0.30%)
  • Open:
    $1,124.13
  • Volume:
    273,978
  • Average Volume (100 Day):
    301,567
  • Market Capitalization:
    $27.5 B
  • Day's Range:
    $1,105.72 - $1,132.98
  • Dividend Yield:
    0.00%
  • 52-week Range:
    $1,135 - $662.17
  • P-E:
    20.10
  • EPS:
    $55.97
  • Earnings Date:
    9/17/19
  • Ex Dividend Date:
    N/A
  • Sector:
    Consumer Cyclical
  • Industry:
    Specialty Retail
  • Analyst Average Recommendation:
    Moderate Buy

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