AutoZone, Inc.

(New York Stock Exchange)
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Bullish +55

Earnings Previews: AutoZone, SAIC, Signet Jewelers

Earnings report AI-generated analysis

πŸ“ˆ AutoZone shares have surged over 36% in the past year, recently hitting a new 52-week high near $2,553.

πŸ’° The company authorized an additional $2.5 billion share repurchase program on top of existing buybacks since 2018.

πŸ“‰ Analysts forecast Q1 fiscal 2023 revenue of $3.86 billion, down 27.9% sequentially but up 5.2% year over year.

πŸ’΅ Expected adjusted EPS for the upcoming quarter is $25.54, reflecting a 14.7% year-over-year increase despite sequential weakness.

πŸ“Š The stock trades at 20.6 times expected 2023 earnings and 17.8 times estimated 2024 earnings of $143.79 per share.

🎯 Of 24 analysts covering the stock, 16 hold Buy or Strong Buy ratings with a median price target of $2,475.

πŸ“‰ AutoZone does not pay a dividend but has delivered a total shareholder return of 36.7% over the past year.

πŸ—“οΈ The company reports quarterly results on Tuesday morning, with Q1 revenue and EPS being highly seasonal metrics.

Bullish Signals
  • AutoZone shares have added more than 36% to their price over the past 12 months, recently posting a new 52-week high.
  • The company authorized an additional $2.5 billion share repurchase program, continuing a decade-long trend of reducing shares outstanding from 27 million to 20 million since fiscal 2018.
  • Of the 24 analysts covering the stock, 16 have issued Buy or Strong Buy ratings, indicating strong institutional confidence.
  • The stock currently trades above its median price target of $2,475 at a recent share price of around $2,553.
  • Analysts forecast adjusted EPS of $25.54 for the upcoming quarter, representing a 14.7% year-over-year increase despite sequential declines.
  • The company has delivered a total shareholder return of 36.7% over the past year, driven by an 8.76% buyback yield.
Risk Factors
  • Analysts forecast Q1 fiscal 2023 revenue of $3.86 billion, which represents a significant 27.9% sequential decline from the previous quarter.
  • The company does not pay a dividend to shareholders, relying entirely on capital appreciation and buybacks for total return.
Full Analysis
AutoZone Inc. (NYSE: AZO) is set to report quarterly results on Tuesday morning following a strong performance that added over 36% to its share price in the past year, culminating in a new 52-week high. The company recently authorized an additional $2.5 billion in share repurchases, continuing a aggressive buyback strategy since fiscal 2018 that has reduced shares outstanding from 27 million to 20 million while increasing stock-based compensation costs. Analysts covering AutoZone maintain a predominantly bullish stance with 16 Buy or Strong Buy ratings against six Hold ratings. At a recent share price of approximately $2,553, the stock trades above the median price target of $2,475, offering potential upside to high targets around $2,850. The company does not pay a dividend but has delivered a total shareholder return of 36.7% over the past year, driven largely by an 8.76% buyback yield. Looking ahead to the first quarter of fiscal 2023, analysts forecast revenue of $3.86 billion, representing a sequential decline but a 5.2% year-over-year increase. Adjusted EPS are expected to reach $25.54, reflecting a significant sequential drop but a 14.7% gain year over year. The stock currently trades at 20.6 times expected 2023 earnings and is projected to trade at lower multiples in subsequent years as growth moderates. AutoZone's financial profile includes a valuation of 17.8 times estimated 2024 earnings and 16.1 times estimated 2025 earnings, with a 52-week trading range between $1,703.32 and $2,610.05. The company operates in a highly seasonal business where roughly 30% of revenue and over 35% of EPS are generated in the fourth quarter, making upcoming reports critical for assessing annual performance trends.