What Are Analysts Expecting from AutoZone’s Q3 2018 Earnings?



AutoZone’s Q3 2018 earnings

Previously, we looked at how America’s three major auto part retailers have outperformed the broader market in May 2018 so far. These companies included AutoZone (AZO), O’Reilly Automotive (ORLY), and Advanced Auto Parts (AAP). However, AutoZone was still trading in negative territory on a year-to-date basis. Weakness in the company’s sales growth and mixed profit margins could be two of the primary reasons for investors’ pessimism.

Now, let’s take a quick look at AutoZone’s recent quarterly earnings performance before looking at its fiscal Q3 2018 earnings estimates.

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Q2 recap

In fiscal Q2 2018 ended February 27, 2018, AutoZone reported adjusted earnings of $8.47 per share, which reflected an increase of about 9.3% from the company’s earnings of $7.75 in the corresponding quarter of the previous year. On the negative side, AZO missed Wall Street analysts’ estimates of $8.92, and its stock fell by over 11% on the day of its Q2 2018 earnings announcement.

Despite positive year-over-year growth in Q2 earnings, the company’s softening sales growth and lower-than-expected earnings could be the key reasons that kept investors worried.

Estimates for fiscal Q3 2018

Analysts expect the existing positive trend in AutoZone’s earnings to remain intact in fiscal Q3 2018. According to these estimates, the company’s third-quarter adjusted earnings could be at $12.97 per share, about 13.4% higher than the $11.44 per share in Q3 2017.

Peer O’Reilly Automotive released its most recent quarterly results on April 25. ORLY’s earnings beat and a 28% YoY (year-over-year) jump in its adjusted earnings per share drove optimism in its stock.

Note that in the most recent quarter, legacy auto companies (FXD) such as Ford (F) and Fiat Chrysler (FCAU) also beat analysts’ estimates.

Continue to the next part to learn what analysts are estimating for AutoZone’s fiscal Q3 2018 revenues.


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