AutoZone's Q1 Revenue Misses By A Whisker Despite Same-Store Sales Growth: Here's Details
Portfolio Pulse from Lekha Gupta
AutoZone Inc (NYSE:AZO) reported a slight miss in Q1 FY24 revenue at $4.19 billion versus the $4.198 billion analyst consensus. Domestic same-store sales grew by 1.2%, and international sales surged by 25.1%, contributing to a total same-store sales increase of 3.4%. Gross margin improved to 52.8%, and operating profit rose 17.4% to $848.6 million. The EPS of $32.55 exceeded expectations. AutoZone repurchased 580 thousand shares for $1.5 billion and ended the quarter with $333.1 million left in its buyback program. The company opened new stores, resulting in a total of 7,165 stores. Shares of AZO are up 1.22% in premarket trading.
December 05, 2023 | 1:30 pm
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AutoZone's Q1 FY24 earnings report showed a marginal revenue miss but a beat on EPS, with strong international growth and an increase in gross margin. The company continues its share repurchase program.
Despite the slight miss in revenue, the positive aspects such as the EPS beat, gross margin expansion, and share repurchases are likely to be viewed favorably by investors. The premarket stock price increase indicates a positive short-term impact.
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