AutoZone Anticipates Strong Earnings Amid Market Fluctuations

With a market cap of $60.7 billion, AutoZone, Inc. (AZO) stands as the top U.S. retailer and a significant distributor of automotive replacement parts and accessories. The company operates across the U.S., Puerto Rico, Mexico, and Brazil, with sourcing support in Shanghai, China. AutoZone caters to both the Do-It-Yourself (DIY) and Do-It-for-Me (DIFM) markets through various sales channels, including over-the-counter and online platforms like AutoZone.com, DuralastParts.com, and ALLDATA.com.

Upcoming Earnings Release and Analyst Expectations

The auto parts retailer is set to announce its fiscal Q3 2025 results on Tuesday, May 20. Analysts predict that AutoZone will report a profit of $37.07 per share, marking over a 1% increase from $36.69 per share in the same quarter last year. Notably, the company has exceeded Wall Street’s earnings estimates in one of the last four quarters, while falling short on three occasions.

Fiscal 2025 Projections

For the fiscal year 2025, analysts expect the Memphis-based company to report an EPS of $150.14, up 2.7% from $146.14 in fiscal 2024. Furthermore, EPS is projected to rise nearly 13% year-over-year to reach $169.59 in fiscal 2026.

Recent Stock Performance

Shares of AZO have increased by 21.9% over the last 52 weeks, outperforming the S&P 500 Index ($SPX), which saw an 8% gain, as well as the Consumer Discretionary Select Sector SPDR Fund (XLY) with a 9.2% return.

Shares of AutoZone dipped slightly on March 4 after the company announced Q2 2025 net sales of approximately $4 billion and profit of $28.29 per share, both falling short of Wall Street estimates. The drop was attributed to decreased consumer spending in the DIY segment due to inflation and currency fluctuations that further impacted results.

Analysts’ Consensus and Future Outlook

Analysts maintain a bullish consensus on AutoZone’s stock, with an overall “Strong Buy” rating. Out of 27 analysts covering the stock, 20 recommend “Strong Buy,” two suggest “Moderate Buy,” and five indicate “Hold.” Currently, AZO is trading below the average analyst price target of $3,853.29.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.