AutoZone, Inc. (NYSE:AZO) on Tuesday reported stronger third-quarter revenue growth.
The automotive-parts retailer, which serves both do-it-yourself customers and professional mechanics through its stores and online platforms, reported third-quarter earnings of $38.07 per share, beating analyst estimates of $36.10. Revenue increased 8.4% year over year to $4.84 billion, ahead of Wall Street expectations of $4.83 billion.
“I want to thank our AutoZoners across the globe for delivering on our promise of “WOW” customer service and strong financial results this past quarter. Along with strong domestic sales results, we managed our expenses well and returned to an operating margin north of 19% for the quarter. We continue to execute well on our growth strategies behind strong execution. Domestically, both DIY and Commercial sales grew impressively this past quarter, while our international sales, in constant currency, continued to be challenged as both Mexico and Brazil performed similarly to last quarter. While international performance has been below our plan, we believe our market share continues to grow as we outpace our competition in both international marketplaces. We were also pleased to have opened 82 new stores globally in the quarter, in line with our current expectations to open approximately 355-365 stores for the full fiscal year. As we remain focused on gaining market share in our industry, we will stay committed to a disciplined approach of increasing earnings and cash flows to drive shareholder value,” said Phil Daniele, President and Chief Executive Officer.
AutoZone shares dipped 24.8% to $138.98 in pre-market trading.
These analysts made changes to their price targets on AutoZone following earnings announcement.
- Baird analyst Justin Kleber maintained the stock with a Neutral and lowered the price target from $3,900 to $3,600.
- BMO Capital analyst Tristan Thomas-Martin maintained AutoZone with an Outperform rating and lowered the price target from $4,300 to $4,000.
Considering buying AZO stock? Here’s what analysts think:
Photo via Shutterstock