Why AutoZone Shares Are Surging Today

AutoZone Inc AZO reported second-quarter 2024 sales growth of 4.6% year-over-year to $3.86 billion, beating the consensus of $3.84 billion.

Domestic same-store sales increased 0.3% in the quarter, while International rose 10.6% on a constant currency basis. Total company same-store sales grew 1.5% on a constant currency basis.

Gross margin expanded 160 basis points Y/Y to 53.9%. Gross profit rose 7.75% Y/Y to $2.08 billion in the quarter.

Operating profit rose 10.9% Y/Y to $743.24 million, and margin improved 111 bps to 19.3%.

The company’s EPS was $28.89 (+17.2% Y/Y), beating the consensus of $26.28.

AutoZone held $304.096 million in cash and cash equivalents as of February 10, 2024.

AutoZone repurchased 84 thousand shares worth $223.8 million in the quarter. At the end of the second quarter, the company had $2.1 billion remaining under its current share repurchase authorization.

The company’s inventory increased by 4.2% Y/Y, driven by new store growth. 

AutoZone opened 19 new stores in the U.S. and closed three in the U.S., six new stores in Mexico, and four in Brazil in the quarter, a total of 26 new stores.

As of February 10, 2024, the company had 6,332 stores in the U.S., 751 in Mexico, and 108 in Brazil, for a total store count of 7,191.

Price Action: AZO shares are trading higher by 4.65% at $2,899.41 on the last check Tuesday.

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