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How Is AutoZone Stock Trading after Its Fiscal Q4 Earnings Event?

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Sep. 21 2018, Published 7:03 a.m. ET

AutoZone’s fiscal Q4 2018 earnings

AutoZone (AZO), the top US auto part retailer by the number of stores, released its fiscal fourth-quarter earnings on September 18. AutoZone’s fiscal fourth quarter ended on August 25.

AutoZone’s adjusted EPS stood at $18.54, about 21.4% higher than its EPS of $15.27 in the fourth quarter of fiscal 2017. In addition, the company beat Wall Street analysts’ EPS estimate of $17.92.

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Investors’ reactions

On the day of AutoZone’s fiscal fourth-quarter earnings release, its stock settled on a bearish note with an ~2.0% loss. However, this loss was erased on September 19, as AutoZone stock recovered by 2.9%.

Despite positive YoY (year-over-year) growth in its fiscal fourth-quarter earnings, the company’s lower-than-expected revenues could be the key reason for the initial negative reaction by investors. On September 19, AutoZone delivered a YTD (year-to-date) return of about -6.0%. In contrast, the S&P 500 benchmark reported an 8.8% YTD gain.

In comparison, AutoZone’s direct peers have posted much better performance. While O’Reilly Automotive (ORLY) has risen ~42.6% YTD, Advance Auto Parts (AAP) has risen ~7.1% in 2018 so far. In contrast, US automakers (XLY) General Motors (GM) and Ford (F) have lost 12.8% and 20.8%, respectively, year-to-date.

Series overview

In this series, we’ll take a look at some key factors that drove AutoZone’s fiscal fourth-quarter results. We’ll also see how the company did in terms of revenues and profitability. At the end of this series, we’ll look at AZO’s valuation multiples and some key technical levels for its stock.

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