AutoZone Inc. (NYSE:AZO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
AutoZone Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 15.76% to $7.27 in the quarter versus EPS of $6.28 in the year-earlier quarter.
Revenue: Rose 22.22% to $2.21 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: AutoZone Inc. reported adjusted EPS income of $7.27 per share. By that measure, the company beat the mean analyst estimate of $7.23. It missed the average revenue estimate of $2.22 billion.
Quoting Management: “We are pleased to report our twenty-seventh consecutive quarter of double digit earnings per share growth. Our organization executed our game plan and delivered another quarter of solid performance. While sales results for the quarter finished below our expectations, we were pleased to see noticeable improvements in our performance during the final four weeks of the quarter, specifically in our more recently challenged Northeastern and Midwestern markets,” said Bill Rhodes, Chairman, President and Chief Executive Officer. “I would like to again thank and congratulate our entire team of 70,000+ AutoZoners for their efforts to deliver strong earnings per share and return on invested capital results in the third quarter. We believe our ongoing efforts to improve our inventory assortment and accelerate its deployment will have meaningful impacts on results for upcoming quarters. We remain committed to our disciplined approach of growing operating earnings while efficiently utilizing our capital.”
Key Stats (on next page)…
Revenue increased 10.75% from $1.99 billion in the previous quarter. EPS increased 52.09% from $4.78 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $10.35 to a profit $10.36. For the current year, the average estimate has moved down from a profit of $27.63 to a profit of $27.61 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)