The results will be benefited by the ongoing initiatives to boost store traffic and ramp up the domestic supply chain network. The benefits of recent investments in retail platforms could drive the quarterly results, with a focus on creating an omnichannel for customers.
Analysts expect the company’s earnings to jump by 12.80% to $15.14 per share and revenue will rise by 4.20% to $2.77 billion for the third quarter. In comparison, during the previous year quarter, the company posted a profit of $13.42 per share on revenue of $2.66 billion.
The company has surprised investors by beating analysts’ expectations in the past four quarters. It is expected that AutoZone will report upbeat results for the third quarter. Majority of the analysts recommended a “hold” rating while expecting the stock to reach $1,037.24 per share in the next 52 weeks.
For the second quarter, AutoZone posted a 10% growth in earnings helped by tax benefits. Revenue inched up by 1.6% year-over-year. Inventory rose by 5.4% driven by new stores and increased product placement. For the quarter, total auto parts sales increased 3.1% and domestic same-store sales were up 2.6%.
During the quarter, the company opened 20 new stores in the United States and its commercial business opened 22 net new programs. AutoZone expects to open about 150 net new commercial programs this fiscal year. With the new stores opened, the company finished this past quarter with 5,651 stores in 50 states in the District of Columbia and Puerto Rico. 568 stores in Mexico and 22 in Brazil for a total AutoZone store count of 6,241.
Shares of AutoZone opened lower on Friday but changed course to the green territory on the NYSE. The stock has risen over 52% in the past year and over 7% in the past three months.