AutoZone Inc (AZO), a prominent player in the specialty retail sector, is set to release its Q1 2025 earnings report on Tuesday, December 10. Wall Street analysts anticipate an earnings per share (EPS) of $33.60, marking a year-over-year increase of 3.2%. Revenue is expected to climb to $4.3 billion, reflecting a 2.6% rise from the same period last year.
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Expected Q1 Earnings Report of AutoZone Inc:
- Analysts have maintained consistent EPS estimates for the last 30 days, indicating a stable financial outlook for AutoZone Inc.
- Net Sales – Auto Parts: Estimated at $4.23 billion, representing a year-over-year increase of 2.8%.
- Net Sales – Domestic Commercial Sales: Predicted to reach $1.14 billion, up 4.7% YoY.
- Number of Stores: Forecasted to rise to 7,388, compared to 7,165 stores in the same quarter last year.
Stock Target Advisor’s Analysis on AutoZone Inc:
Stock Target Advisor’s analysis presents a “Slightly Bullish” outlook for AutoZone Inc, supported by eight positive signals, including high market capitalization, superior risk-adjusted returns, and top-quartile revenue growth over the past five years. The stock also boasts stability due to low volatility and effective capital utilization, as evidenced by a remarkable return on invested capital (ROIC) of 82.02%.
Despite these strengths, AutoZone’s valuation metrics suggest caution. The stock is deemed overpriced compared to its peers based on earnings, book value, cash flow, and free cash flow. However, its average analyst target price remains optimistic at $3,300.16, with strong buy ratings from major analysts such as Wells Fargo, TD Cowen, and Roth MKM Partners.
Conclusion:
As AutoZone Inc prepares to unveil its Q1 2025 earnings, its stable growth trajectory and strong analyst sentiment provide a promising outlook. AutoZone’s robust market presence and innovative approach to automotive retail underscore its position as a sector leader.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
