AutoZone Reports Q1 Fiscal 2025 Earnings, Short of Expectations

AutoZone Inc. (AZO - Free Report) has released its earnings report for the first quarter of fiscal 2025, which ended on November 23, 2024. The company announced earnings of $32.52 per share. This figure fell short of the Zacks Consensus Estimate, which projected earnings of $33.54 per share. In comparison, AutoZone recorded earnings of $32.55 per share during the same period in the previous fiscal year, 2024.

Despite the earnings miss, AutoZone's net sales saw a year-over-year increase of 2.1%, totaling $4.28 billion. However, this revenue also missed the Zacks Consensus Estimate of $4.29 billion.

During the quarter, domestic commercial sales reached $1.13 billion, an increase from $1.09 billion reported in the prior year. Company-owned stores that have been open for at least a year experienced a minor growth in same-store sales of 0.3%.

Gross profit witnessed an uptick, rising to $2.27 billion compared to $2.21 billion in the same quarter last year. Conversely, operating profit saw a slight decline, decreasing by 0.8% year-over-year to $841 million.

Store Expansion and Inventory Details

In this quarter, AutoZone expanded its reach by opening 23 new stores in the United States, along with six in Mexico and five in Brazil. By the end of the quarter, the company had a total of 6,455 stores in the United States, 800 in Mexico, and 132 in Brazil, leading to a total store count of 7,387.

AutoZone's inventory saw an increase of 8.7% from the previous year. As of the end of the quarter, the inventory per store was valued at $849,000, compared to $806,000 a year earlier.

Financial Overview and Share Repurchase Program

As of November 23, 2024, AutoZone reported cash and cash equivalents amounting to $304 million, which is an increase from $298.2 million as of August 31, 2024. The total debt for the company stood at $9.01 billion at the close of the quarter, a slight reduction from $9.02 billion reported earlier in the year.

In terms of shareholder value, AutoZone repurchased 160,000 shares of its common stock during the fiscal first quarter, with a total expenditure of $505.2 million at an average price of $3,156 per share. The company still has $1.7 billion available under its current share repurchase authorization as of the quarter's end.

Current Zacks Rank and Notable Alternatives

AutoZone is currently ranked #4 (Sell) in the Zacks ranking system.

For investors looking for better alternatives in the automotive sector, Dorman Products, Inc. (DORM - Free Report), Tesla, Inc. (TSLA - Free Report), and Blue Bird Corporation (BLBD - Free Report) are all rated #1 (Strong Buy) at this time. These stocks may provide potentially higher returns.

The Zacks Consensus Estimate for DORM suggests projected year-over-year sales growth of 3.66%, alongside significant expected earnings growth of 51.98% for 2024. Notably, earnings per share (EPS) expectations for 2024 and 2025 have also seen upward adjustments in recent weeks.

Meanwhile, the Zacks Consensus Estimate for TSLA indicates a 2.97% growth in sales for 2024, with EPS estimates having increased recently as well.

Similarly, BLBD forecasts robust financial growth for fiscal 2025, anticipating a 10.97% increase in sales and a 12.14% rise in earnings, with recent enhancements to EPS estimates.

Earnings, Revenue, Stocks