AutoZone's (AZO) Q2 earnings and revenue beat projections, stock climbs

February 27, 2024 7:28 AM EST

Shares of AutoZone (NYSE: AZO) rose more than 2% in premarket trading Tuesday after the auto parts retailer reported better-than-expected FQ2 earnings and revenue, while comparable sales growth slightly missed expectations.

Earnings per share (EPS) for the fiscal second quarter were reported at $28.89, surpassing the consensus estimates of $26.30. Revenue came in at $3.9 billion, also ahead of the projection of $3.85 billion.

The company reported a 3% increase in comparable sales, compared to a 5.3% rise year-over-year, and slightly short of the expected 3.08% growth.

Operating profit stood at $743.2 million, marking an 11% increase from the previous year, well above the forecast of $700.4 million.

The gross margin was 53.9%, compared to 52.3% year-over-year, and better than the 53% estimated by analysts.

“I want to thank our AutoZoners for delivering solid earnings in our second fiscal quarter. Their commitment to delivering superior customer service again drove our very solid quarterly performance,” said AutoZone’s CEO and President Phil Daniele.

“We remain committed to prudently investing capital in our business, and we will be steadfast in our long-term, disciplined approach to increasing operating earnings and cash flows while utilizing our balance sheet effectively,” he added.

By Vahid Karaahmetovic

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