AutoZone Beats Earnings Estimates, Revenue Jumps In Q4

AutoZone (AZO) reported Monday that same-store sales rose 6.2% year-on-year, leading to better-than-expected fourth-quarter results. The jump was double what analysts had predicted.

The Memphis-based auto parts retailer benefited from continued strong growth in its aftermarket business. Inflation and supply chain problems have reduced demand for new and used cars.

In its fourth-quarter report, AutoZone said its revenue totaled $5.35 billion — up 9% from this point last year, beating Wall Street expectations. The company reported total earnings of $810 million for the most recent quarter, up from $785.8 million a year earlier.

“Our results are a testament to our AutoZoners’ continued commitment to providing exceptional customer service every day,” Autozone CEO Bill Rhodes said in a statement.

In a conference call Monday, Rhodes told analysts that the company had raised prices amid rising costs for transportation, labor and raw materials, which boosted revenue by 11% in the most recent quarter.

The company’s soaring profits come at a time when employers have been encouraging workers to return to the office. By mid-September, nearly half of office workers were back at work, according to a survey by the Partnership for New York City. The survey predicted that number will rise to over 50% by January 2023.

Rhodes added that alongside employers urging a return to the office, recent weather conditions have contributed to higher sales.

After a positive premarket performance Monday, shares of AutoZone closed at $2,097.59, down $68.06, or 3.14%.

Rhodes expressed confidence in the company’s future growth.

“The investments we have made in both stock availability and technology strengthen our competitive position. We are optimistic about our growth prospects in our new fiscal year,” he said.

https://www.ibtimes.com.au/autozone-beats-earnings-estimates-sales-jump-q4-1838514?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution AutoZone Beats Earnings Estimates, Revenue Jumps In Q4

Fry Electronics Team

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