Auto parts retailer AutoZone slightly misses Q1 sales estimates

Overview

• AutoZone Q1 net sales up 8.2% yr/yr but slightly missed analyst expectations

• Adjusted EPS for Q1 missed consensus, reflecting increased operating expenses

• Company repurchased 108,000 shares for $431.1 mln under share buyback program

Outlook

• Company plans to open more stores throughout the fiscal year

Result Drivers

• STORE EXPANSION - AutoZone opened 53 new stores globally, contributing to sales growth

• SAME STORE SALES - Strong same store sales growth, particularly internationally, with 11.2% increase

• GROSS MARGIN IMPACT - Gross margin decreased due to a 212 basis point non-cash LIFO impact

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Autozone Inc is $4,700.00, about 24.8% above its December 8 closing price of $3,766.96

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNXzHFbL

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