AutoZone Q2 Earnings: Miss Estimates, 2.4% Revenue Growth, Higher Inventory And More

AutoZone, Inc. AZO shares are trading lower in the premarket session on Tuesday.

The company reported second-quarter GAAP earnings per share of $28.29, missing the street view of $29.39.

Quarterly sales of $3.952 billion (+2.4% year over year) missed the analyst consensus estimate of $3.981 billion. Total company same store sales increased 0.5% for the 12 weeks and rose 2.9% in constant currency.

“Domestically, both DIY and Commercial continued to perform well and sales accelerated from the previous quarter….While currency rate moves pressured reported sales and earnings, our international performance remains encouraging as we continue to focus on opening more stores in these markets,” said Phil Daniele, President and Chief Executive Officer.

For the quarter, gross profit, as a percentage of sales, was flat to last year at 53.9%. Operating profit decreased 4.9% to $706.8 million.

The company’s inventory increased 10.4% over the same period last year. 

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Net income for the quarter decreased 5.3% over the same period last year to $487.9 million, while diluted earnings per share decreased 2.1% to $28.29.

During the quarter that ended February 15, AutoZone opened 28 new stores in the U.S., 13 new stores in Mexico, and four in Brazil, for a total of 45 net new stores.

The company had 6,483 stores in the U.S., 813 in Mexico, and 136 in Brazil, for a total store count of 7,432.

AutoZone exited the quarter with cash and equivalents worth $300.905 million. The company’s total debt expanded to $9.052 billion from $8.630 billion in the year-ago period.

Price Action: AZO shares are trading lower by 0.44% to $3,477.76 premarket at last check Tuesday.

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