© Reuters. AutoZone (AZO) Tops Estimates, Analyst Highlights Strong DIFM Sales Growth
By Senad Karaahmetovic
Shares of AutoZone (NYSE:) are up almost 3% after the company posted better-than-expected results.
AZO reported an FQ4 of $40.51 on revenue of $5.3 billion to beat the consensus of $38.51 on sales of $5.15 billion. Comparable sales came in at +6.2%, much better than the consensus of +3.17%.
“The investments we have made in both inventory availability and technology are enhancing our competitive positioning. We are optimistic about our growth prospects heading into our new fiscal year,” said CEO Bill Rhodes.
A Goldman Sachs analyst is not surprised AZO is trading higher in pre-market Monday “as we believe investors view the company’s strong DIFM sales growth favorably.”
“We estimate that DIFM same store sales increased 20.9% y/y while DIY increased 0.7%,” the analyst added in a note.
An Evercore ISI analyst added: “AutoZone’s FY4Q results (May- Aug) show they are growing the topline and winning share. Gross margin pressure shows inflation pass through comes on a lag.”
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