How Is AutoZone Stock Faring ahead of Fiscal Q3 Results?




AutoZone (AZO), one of the top three US auto parts retailers by number of stores, is set to release its fiscal Q3 2018 earnings on May 22. Note that for AutoZone, Q3 2018 refers to the 12 weeks ended May 5, 2018. 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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Minor recovery in May 2018

As of May 16, AutoZone stock was trading on a positive note at $647.93 with about 3.7% MTD (month-to-date) gains. This MTD performance was better than the 2.8% rise in the S&P 500 Index in May so far. By comparison, AutoZone’s direct peers O’Reilly Automotive (ORLY) and Advance Auto Parts (AAP) have risen 5.9% and 4.0% MTD, respectively.

However on a YTD (year-to-date) basis, AZO was still in the negative territory with 8.9% losses. In contrast, ORLY and AAP have risen by about 12.8% and 19.4%, respectively, during the same period while the S&P 500 benchmark has delivered 1.8% positive returns. Investors’ concerns about AutoZone’s stagnated year-over-year sales and mixed profit margins could be the primary reasons for the pessimism surrounding its stock in 2018 so far.

The stocks of automakers (XLY) such as Fiat Chrysler (FCAU) and Ferrari (RACE) have delivered impressive positive returns of 24.9% and 27.7%, respectively, in 2018 so far.

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 are recommending for AutoZone stock before fiscal Q3 2018 results. We’ll also discuss what other key announcements investors can expect from the company’s upcoming earnings event.


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