AutoZone’s fiscal 2019 first-quarter earnings

AutoZone (AZO), the top US auto part retailer by number of stores, released its fiscal 2019 first-quarter earnings results on December 4.

AutoZone’s first-quarter earnings cover the 12-week period that ended on November 17. In the quarter, the company’s adjusted EPS stood at $13.47, ~34.7% higher than its EPS of $10.00 in the first quarter of fiscal 2018. The company also beat Wall Street analysts’ EPS estimate of $12.21 by an impressive margin.

How Is AutoZone Stock Trading after Its Q1 2019 Earnings Event?

Investors’ reactions

On the day of AutoZone’s fiscal 2019 first-quarter earnings release, its stock settled on a bullish note with a gain of ~6.8%.

Given the positive YoY (year-over-year) rise in its first-quarter earnings, the company’s higher-than-expected revenue and strong industry outlook could be the key reasons for investors’ positive reactions.

As of December 4, AutoZone has delivered a positive return of ~23.7% YTD (year-to-date), far better than the 1.0% YTD gain in the S&P 500 benchmark.

In comparison, the performances of AutoZone’s direct peers have been even better. While O’Reilly Automotive (ORLY) has risen ~44.0% YTD, Advance Auto Parts (AAP) has risen ~78.7% YTD. In contrast, US automakers (FXD) General Motors (GM) and Ford Motor Company (F) have fallen 10.9% and 25.7% YTD, respectively.

Series overview

In this series, we’ll take a look at some key factors that drove AutoZone’s fiscal 2019 first-quarter results. We’ll also see how the company did in terms of revenue and profitability. At the end of this series, we’ll take a look at AZO’s valuation multiples and some key technical levels for its stock.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.