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Category: Stock Market and AutoZone
Date: 15 December 2019 Stock Price: $1235.32 We take a look at the st quarter earnings release of their 2020 fiscal year of Autozone a automotive replacement parts supplier operating in the Americas. The group saw same store sales grow by 3.4% and EPS of $14.30
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About AutoZone
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 3rd quarter 2019 earnings report
The numbers we are interested in (for the quarter):
- Net sales: $2.793 billion (up from $2.641 billion from the same quarter of the previous year)
- Revenue increased by 5.75% over the last 12 months
- Cost of Sales: $1.291 billion (up from $1.224 billion for the same quarter of the previous year)
- Cost of sales increased by 5.47% over the last 12 months
- Net income: $350.338 million (down from $351.406 million for the same quarter of the previous year)
- Diluted income per share: $14.3 (up from $13.47 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 24.493 million (down from 26.09 million for the same quarter of the previous year)
- Cash and cash equivalents: $158.098 million
- Cash and cash equivalents per share: $6.45
- Cash and cash equivalents makes up 0.52% of AutoZone's market capital
- Cash and cash equivalents makes up 1.24% of AutoZone's total assets
- Inventories : $4.463 billion
- Inventories makes up 35.1% of AutoZone's total assets
AutoZone's management commentary on the results and earnings guidance
MEMPHIS, Tenn., Dec. 10, 2019 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $2.8 billion for its first quarter (12 weeks) ended November 23, 2019, an increase of 5.7% from the first quarter of fiscal 2019 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 3.4% for the quarter.
Under its share repurchase program, AutoZone repurchased 403 thousand shares of its common stock for $450.0 million during the first quarter, at an average price of $1,116 per share. At the end of the first quarter, the Company had $1.3 billion remaining under its current share repurchase authorization.
Under its share repurchase program, AutoZone repurchased 403 thousand shares of its common stock for $450.0 million during the first quarter, at an average price of $1,116 per share. At the end of the first quarter, the Company had $1.3 billion remaining under its current share repurchase authorization.
The Company’s inventory increased 9.1% over the same period last year, driven by new stores and increased product placement. Inventory per store was $694 thousand versus $658 thousand last year and $674 thousand last quarter. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was a negative $71 thousand versus negative $59 thousand last year and negative $85 thousand last quarter.
“I would like to thank and congratulate our entire organization for delivering solid sales and earnings in our first fiscal quarter. Our business strengthened during the quarter with accelerated growth in both Retail and Commercial. The hard work of our AutoZoners and their dedication to providing superior customer service, again drove our strong quarterly performance. As our industry’s fundamentals remain healthy, we are optimistic about what we can accomplish this new year, with our ongoing initiatives in place to improve inventory availability, drive DIY sales, and continue to grow Commercial substantially faster than industry growth. We believe our efforts will allow us to meet or exceed our customers’ needs across all channels. As we opportunistically invest capital in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and of utilizing our balance sheet and capital effectively,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
“I would like to thank and congratulate our entire organization for delivering solid sales and earnings in our first fiscal quarter. Our business strengthened during the quarter with accelerated growth in both Retail and Commercial. The hard work of our AutoZoners and their dedication to providing superior customer service, again drove our strong quarterly performance. As our industry’s fundamentals remain healthy, we are optimistic about what we can accomplish this new year, with our ongoing initiatives in place to improve inventory availability, drive DIY sales, and continue to grow Commercial substantially faster than industry growth. We believe our efforts will allow us to meet or exceed our customers’ needs across all channels. As we opportunistically invest capital in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and of utilizing our balance sheet and capital effectively,” said Bill Rhodes, Chairman, President and Chief Executive Officer.
AutoZone (NYSE: AIT) stock price history
The image below, obtained from Google, shows the stock price history of AutoZone (NYSE: AZO) over the last 5 year. And it's been a good time for AutoZone stockholders. 5 years ago the stock of AutoZone was trading at $508 a stock, and its currently it's trading at $1096.63. Thats s return of 115.7% offered over the last 5 years. The stock is also trading at a lot closer to its 52 week high of $1186.60 than it is to its 52 week low of $705 which to us is a clear indication that the short term sentiment and momentum of the stock is very positive.
Recent coverage of AutoZone (AZO)
The extract below covers Autozone's latest earnings report as obtained from TheStreet.com
AutoZone (AZO) - Get Report shares jumped more than 6% Tuesday after the Memphis auto-parts retailer reported fiscal-first-quarter results -- revenue, earnings and same-store-sales growth -- that were ahead of expectations. For the quarter ended Nov. 23 the company reported earnings of $14.30 a share against $13.47 in the year-earlier quarter. Shares outstanding dropped 6.1% to 24.5 million. Analysts polled by FactSet were looking for $13.70 a share.
Sales of $2.79 billion rose 5.7% from a year earlier and beat the estimate of $2.77 billion. Same-store sales rose 3.4% year over year in the quarter, topping estimates of a 2.5% increase. The latest number also bettered the 2.7% growth it reported in the year-earlier quarter. “Our business strengthened during the quarter with accelerated growth in both retail and commercial,” AutoZone President and CEO Bill Rhodes said in a statement.
Read the original article here
AutoZone (AZO) - Get Report shares jumped more than 6% Tuesday after the Memphis auto-parts retailer reported fiscal-first-quarter results -- revenue, earnings and same-store-sales growth -- that were ahead of expectations. For the quarter ended Nov. 23 the company reported earnings of $14.30 a share against $13.47 in the year-earlier quarter. Shares outstanding dropped 6.1% to 24.5 million. Analysts polled by FactSet were looking for $13.70 a share.
Sales of $2.79 billion rose 5.7% from a year earlier and beat the estimate of $2.77 billion. Same-store sales rose 3.4% year over year in the quarter, topping estimates of a 2.5% increase. The latest number also bettered the 2.7% growth it reported in the year-earlier quarter. “Our business strengthened during the quarter with accelerated growth in both retail and commercial,” AutoZone President and CEO Bill Rhodes said in a statement.
Read the original article here
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 $1062 a stock (up slightly from our 4th quarter 2019 earnings report valuation of AutoZone). We therefore believe the stock of AutoZone is overvalued
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 $1062 Therefore we believe the a good entry point into the stock is below $955.80. We believe the stock of AutoZone will pull back from current levels to levels closer to our target price (full value price) levels in coming weeks and months.
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 $1062 Therefore we believe the a good entry point into the stock is below $955.80. We believe the stock of AutoZone will pull back from current levels to levels closer to our target price (full value price) levels in coming weeks and months.
Recent coverage of Autozone
It is expected that Autozone will release their 4th quarter and full 2019 fiscal earnings report in early March 2020