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AutoZone’s Stock Performance ahead of Fiscal 2Q18 Earnings




One of the top three US auto parts retailers by store count, AutoZone (AZO), is set to release its fiscal 2Q18 earnings on February 27. For AutoZone, 2Q18 refers to the 12 weeks ended on February 10. Before we begin looking at analysts’ estimates for the company’s upcoming earnings, let’s take a quick look at its recent stock price performance.

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Bearish movement in February 2018

As of February 20, AutoZone stock was trading on a bearish note at $713.23 with about 6.8% MTD (month-to-date) losses. These MTD losses were much worse than the just 3.8% drop seen in the S&P 500 Index in February so far. AutoZone’s direct peers O’Reilly Automotive (ORLY) and Advance Auto Parts (AAP) have witnessed MTD declines of 4.7% and 9.9%, respectively.

However on YTD (year-to-date) basis, AZO was still in positive territory, with minor gains of 0.3%. ORLY and AAP also have risen about 4.9% and 5.7%, respectively, while the S&P 500 benchmark has delivered 1.6% positive returns.

Auto parts retailers’ mixed fundamentals—such as stagnated year-over-year sales and mixed profit margins—could be the primary reason for recent pessimism toward their stocks.

Notably, in 2018 so far, automakers (XLY) such as Fiat Chrysler (FCAU) and Ferrari (RACE) have delivered stellar positive returns of 23.9% and 22.5%, respectively.

Series overview

In this series, we’ll take a look at Wall Street analysts’ estimates for AZO’s revenue and profit margins. We’ll see what analysts recommend for AutoZone stock before the fiscal 2Q18 results. We’ll also discuss what other key announcements investors could expect from the company’s upcoming earnings event.

We’ll begin with a quick recap of AZO’s fiscal 1Q18 earnings, and then we’ll move on to the company’s fiscal 2Q18 earnings estimates.


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