Categories AlphaGraphs, Earnings

AutoZone crushes 3Q earnings estimates

Auto parts retailer and top industry performer AutoZone (AZO) reported earnings of $366.72 million or $13.42 per share in the third quarter, up from with $331.70 million or $11.44 per share during the prior year period. This topped analyst estimates that expected earnings of $13.01 a share. This increase in earnings was mainly due to the lower effective income tax rate.

This earnings beat led to an increase in the company’s shares (up by at least 2.99%) during the pre-market trading.

Revenues came in at $2.7 billion, up 1.6%, which is in line with analysts’ expectations. Domestic same-store sales rose marginally by 0.6% for the quarter. The decline in sales was mostly due to the unfavorable weather conditions during March and April.

 

AutoZone third quarter 2018 earnings

 

The company’s inventory increased 3.7% over the same period last year, driven by new stores and increased product placement. Inventory per location was $658 thousand compared to $671 thousand last quarter.

During the quarter, AutoZone opened 26 new stores and relocated two stores in the US. As of May 5, 2018, the company had 5,540 stores in 50 states in the US, the District of Columbia and Puerto Rico, 536 stores in Mexico, and 16 stores in Brazil for a total store count of 6,092.

Early this year, AutoZone sold its subsidiary AutoAnything to Kingswood capital. According to analysts, the company sold the unit, an online retailer for auto parts and accessories, as it was too small and was not profitable.

“Our ongoing initiatives, which include enhanced inventory availability, further commercial acceleration, and new omnichannel selling initiatives, continue to gain traction as we roll them further across our chain.  As we continue to invest in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and utilizing our balance sheet and capital effectively,” said Bill Rhodes, CEO.

Most Popular

Kraft Heinz reports Q2 earnings: Infographic

The Kraft Heinz Company (NASDAQ: KHC) reported second-quarter 2021 financial results before the regular market hours on Wednesday. The food company reported Q2 revenue of $6.62 billion, down 0.5% year-over-year

GM Earnings: Key quarterly highlights from General Motors Q2 financial results

General Motors Co. (NYSE: GM) reported second quarter 2021 earnings results today. Total revenue rose to $34.2 billion from $16.8 billion in the same period last year. GAAP net income

CVS Health Corp. (CVS) Earnings: 2Q21 Key Numbers

VS Health Corporation (NYSE: CVS) reported second-quarter 2021 earnings results today. Total revenues increased 11.1% to $72.6 billion compared to the same period last year, driven by growth across all

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top