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What Analysts Expect from AutoZone’s 4Q17 Earnings

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Sep. 14 2017, Published 10:17 a.m. ET

AutoZone’s 4Q17 report

Previously, we looked at how America’s three major auto part retailers have underperformed the broader market in 2017 so far. These companies included AutoZone (AZO), Advance Auto Parts (AAP), and O’Reilly Automotive (ORLY). AutoZone’s weakness in its gross margins along with its dropping same-store sales could be two of the primary reasons for this pessimism on Wall Street. Let’s take a quick look at AZO’s recent quarterly earnings performance.

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3Q17 quick recap

In 2Q17, which ended May 6, 2017, AutoZone reported earnings of $11.44 per share. The company’s reported EPS reflected a rise of about 6.2% from the company’s earnings of $10.77 in the corresponding quarter of 2016. The minor increase in its sales and decrease in same-store sales kept investors at bay.

Estimates for 4Q17 EPS

Analysts expect the existing positive trend in the company’s EPS (earnings per share) to remain intact in the fourth quarter. According to these estimates, AutoZone’s adjusted EPS could be $15.23, about 6.5% higher than the corresponding quarter of 2016.

Advanced Auto Parts released its most recent quarterly earnings on May 23, 2017. Along with a YoY (year-over-year) decline in its key financial metrics, the company also missed Wall Street analysts’ estimates for the quarter, which could be a primary reason why the stock hasn’t seen a major recovery recently.

In the most recent quarter, legacy auto companies (XLY) such as General Motors (GM) and Fiat Chrysler (FCAU) beat analysts’ estimates.

Read the next part of this series to learn what analysts are estimating for AutoZone’s 4Q17 revenues.

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