AutoZone Inc (AZO) earnings release for the 1st quarter of their 2022 fiscal year
Category: AutoZone (AZO)
Date: 9 December 2021 Stock Price of Autozone (AZO): $1988.86 Market Capital of Autozone: $41.7 billion We take a look at the 1st quarter earnings release of their 2022 fiscal year of Autozone a automotive replacement parts supplier operating in the Americas. The group reported $3.67 billion in sales for the quarter and net income of $555 million.
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Our strong sales and earnings this first quarter are a continuing testament to our AutoZoners’ commitment to going the extra mile for our customers. Our retail and commercial sales performance were consistently strong all quarter. Our commercial business growth continues to be exceptionally strong at 29.4% as the investments we are making are positioning us well in the marketplace. We are optimistic about our growth prospects for the balance of the fiscal year -Bill Rhodes, Chairman, President and Chief Executive Officer"
More About AutoZone (AZO)
AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the Americas. Each AutoZone store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts.
Overview of AutoZone's 4th quarter 2020 earnings report
1st quarter 2022 highlights
- Net sales: $3.67 billion
- Cost of Sales: $1.74 billion
- Net income: $555 million
- Diluted income per share: $25.69
- Diluted weighted-average shares outstanding: 21.6million
- Cash and cash equivalents: $961 million
AutoZone's management commentary on their 1st quarter 2022 earnings
MEMPHIS, Tenn., Dec. 07, 2021 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $3.7 billion for its first quarter (12 weeks) ended November 20, 2021, an increase of 16.3% from the first quarter of fiscal 2021 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 13.6% for the quarter.
“Our strong sales and earnings this first quarter are a continuing testament to our AutoZoners’ commitment to going the extra mile for our customers. Our retail and commercial sales performance were consistently strong all quarter. Our commercial business growth continues to be exceptionally strong at 29.4% as the investments we are making are positioning us well in the marketplace. We are optimistic about our growth prospects for the balance of the fiscal year,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
“Our strong sales and earnings this first quarter are a continuing testament to our AutoZoners’ commitment to going the extra mile for our customers. Our retail and commercial sales performance were consistently strong all quarter. Our commercial business growth continues to be exceptionally strong at 29.4% as the investments we are making are positioning us well in the marketplace. We are optimistic about our growth prospects for the balance of the fiscal year,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
“While the COVID-19 pandemic continues to impact our customers’ and AutoZoners’ lives, our primary focus remains the well-being and safety of our customers and AutoZoners. We will continue to invest to make our stores the best and safest place to shop for everyone’s automotive needs. During these unique and challenging times, we will strive to deliver the best customer service possible. As we continue to prudently invest capital in our business, we remain committed to our long-term, disciplined, approach of increasing operating earnings and cash flow while utilizing our balance sheet effectively,” said Rhodes.
AutoZone (AZO) stock price chart over the last 5 years
The image below shows the stock price history of AutoZone (AZO) over the last 5 year. And it's been a good time for AutoZone stockholders. Over the last 5 years that's a return of 151.3% provided to Autozone stockholders
The stock of Autozone is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of the stock is very positive.
The stock of Autozone is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of the stock is very positive.
Autozone (AZO) stock vs O'Reilly (ORLY) stock over the last 5 years
The image below shows the stock price history of Autozone (AZO) and O'Reilly Automotive (ORLY) over the last 5 years. Both of these automotive parts suppliers stock has had a pretty decent run over the last couple of years. The summary below shows the stock price returns of Autozone and O'Reilly over the last 5 years:
- Autozone (AZO): 151.3%
- O'Reilly's Automotive (ORLY): 140%
AutoZone (NYSE: AZO) latest stock valuation
So based on the earnings report of AutoZone (NYSE: AZO) and the latest earnings guidance provided what do we value AutoZone (AZO) stock at? Based on their latest earnings report our target (full value) price for AutoZone at $1700 a stock. We therefore believe the stock of AutoZone is overvalued at its current price
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1700 Therefore we believe the a good entry point into the stock is below $1530. Since the stock of Autozone is trading at well above our suggested entry point we rate the stock of Autozone as a SELL
We usually suggest long term fundamental and value investors look to enter the stock at least 10% below our target price, which in this case is $1700 Therefore we believe the a good entry point into the stock is below $1530. Since the stock of Autozone is trading at well above our suggested entry point we rate the stock of Autozone as a SELL
Next earnings release of Autozone (AZO)
It is expected that Autozone will release their 2nd quarter 2022 earnings report in late March 2022