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Valued at a market cap of $64.1 billion, AutoZone, Inc. (AZO) retails and distributes automotive replacement parts and accessories. The Memphis, Tennessee-based company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It is expected to announce its fiscal Q4 earnings for 2025 on Tuesday, Sept. 23.
Ahead of this event, analysts project this automotive replacement parts company to report a profit of $51.42 per share, up 6.9% from $48.11 per share in the year-ago quarter. The company has missed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $35.36 per share in Q3 fell short of the consensus estimates by 3.9%.
For the full year, analysts expect AZO’s EPS to be $147.67, up 1.1% from $146.14 per share in fiscal 2024. Its EPS is expected to further grow 14.2% year-over-year (YoY) to $168.64 in fiscal 2026.
Shares of AutoZone have outpaced the S&P 500 Index's ($SPX) 17.1% return over the past 52 weeks, with its shares up 22.9% over the same time frame. However, it has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.9% uptick over the same period.
AutoZone’s shares plunged 3.4% on May 27, after it delivered its Q3 earnings results. While its revenue rose 5.4% YoY to $4.5 billion, beating estimates, net income slipped 3.6% annually to $35.36 per share, missing the mark by 3.9% - signaling a mixed bag of growth and pressure. Despite the top-line growth, higher costs of sales and increased operating expenses weighed on its profitability, dampening investor confidence.
Wall Street analysts are highly optimistic about AZO’s stock, with an overall "Strong Buy" rating. Among 26 analysts covering the stock, 21 recommend a "Strong Buy," two indicate a "Moderate Buy," and three advise a “Hold.” The mean price target for AZO is $4,125.46, indicating an 8.7% potential upside from the current levels.
