AutoZone Soars in Q1: EPS Hits $32.55, Beating Expectations
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AutoZone Soars in Q1: EPS Hits $32.55, Beating Expectations

AutoZone Inc. (NYSE: AZO) exceeded expectations in the first quarter of fiscal year 2024 with an EPS of $32.55 and net sales of $4.2 billion.
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Key Highlights

  • AutoZone Inc. reported a significant increase in its earnings per share (EPS), reaching $32.55 in Q1, surpassing the expected EPS of $31.56.
  • The company achieved net sales of $4.2 billion in the first quarter, slightly exceeding the anticipated revenue of $4.19 billion.
  • AutoZone’s strategic share repurchase program continued robustly, with $1.5 billion invested in Q1 and a total of $35.3 billion since the program’s inception.

AutoZone Inc. (NYSE: AZO) reported its first-quarter financial results for the fiscal year 2024, showcasing a resilient and growing business model. The company’s net sales reached $4.2 billion, a 5.1% increase from the first quarter of fiscal 2023. This performance slightly surpasses the market expectations of $4.19 billion in revenue. A pivotal factor in this growth is the domestic same-store sales, which saw a modest increase of 1.2%​​.

One of AutoZone’s most notable achievements in this quarter is the substantial increase in its earnings per share (EPS), which rose to $32.55. This figure significantly exceeds the anticipated EPS of $31.56, highlighting the company’s profitability and efficient cost management. The increase in net income, which grew by 10% to $593.5 million, further underpins the company’s financial strength​​.

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AutoZone Invested $35.3 Billion in Share Buybacks in Q1

AutoZone’s growth strategy involves a balanced approach to expanding its store footprint while returning value to shareholders through aggressive share repurchases. In the fourth quarter of fiscal 2023, the company opened 52 new stores in the United States, continuing its domestic expansion. The international market also saw notable growth, particularly in Mexico and Brazil, where store counts increased by 5.3% and 38.9%, respectively, compared to Q4 FY22. Overall, AutoZone opened 197 new stores in the fiscal year, marking a significant expansion from the 176 stores opened in the previous year​​.

Its share repurchase program shows the company’s commitment to shareholder returns. AutoZone repurchased 580 thousand shares at an average price of $2590 per share, amounting to a $1.5 billion investment in the first quarter. Since the inception of this program, the company has invested $35.3 billion in repurchasing its common stock. This strategy boosts shareholder value and reflects confidence in its business model​​.

Capital Deficit Narrows in Q1 for AutoZone

AutoZone’s balance sheet highlights reveal a well-managed financial structure. As of August 26, 2023, the company reported $5.764 billion in inventory, maintaining stable inventory turns at 1.5x. The working capital deficit improved slightly, from $1.960 billion to $1.732 billion. Additionally, the company’s debt increased to $7.669 billion, up from $6.122 billion in the previous year, reflecting its strategic investments and share repurchases. These repurchases amounted to $1.0 billion for Q4 FY23 and $3.7 billion for the full fiscal year​​.