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AutoZone First Quarter Earnings
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AZO
AutoZone Inc (NYSE:AZO) announced its results for the first quarter on December 4, 2012. AutoZone is a specialty retailer of automotive replacement parts and accessories, offering an extensive line for cars, sport utility vehicles, vans, and light trucks.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: AutoZone posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported $5.41 per share versus the $5.40 per share estimate and revenues of $1.99 billion versus the $2.13 billion estimate. EPS rose 15.6% while revenue climbed 3.5% from the same period last year. AutoZone's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the first quarter was up 6.4% to $203.5 million. Last quarter marked the third in a row of rising net income.
Management Quote: "We will maintain our disciplined approach to growing operating earnings and utilizing our capital effectively," said Bill Rhodes, Chairman, President and Chief Executive Officer.
A Look Back: Net income has increased 9.4% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 12.7% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. For the fiscal year, the average estimate has moved up from $27.14 a share to $27.58 over the last ninety days.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: AutoZone posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported $5.41 per share versus the $5.40 per share estimate and revenues of $1.99 billion versus the $2.13 billion estimate. EPS rose 15.6% while revenue climbed 3.5% from the same period last year. AutoZone's revenue has grown during each of the past four quarters on a year-over-year basis. Net income for the first quarter was up 6.4% to $203.5 million. Last quarter marked the third in a row of rising net income.
Management Quote: "We will maintain our disciplined approach to growing operating earnings and utilizing our capital effectively," said Bill Rhodes, Chairman, President and Chief Executive Officer.
A Look Back: Net income has increased 9.4% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 12.7% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. For the fiscal year, the average estimate has moved up from $27.14 a share to $27.58 over the last ninety days.
by
Investopedia Staff
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