We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AutoZone (AZO) to Release Q3 Earnings: What's in Store?
Read MoreHide Full Article
AutoZone, Inc. (AZO - Free Report) is slated to report third-quarter fiscal 2019 (ended May 4, 2019) results on May 21, before the market opens. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. In fact, it recorded earnings beat in all of the trailing four quarters, the average earnings surprise being 8.1%.
In the past three months, AutoZone’s shares have outperformed the industry. The company’s shares gained 6.4% compared with the industry’s growth of 0.9%.
Let’s see how things are shaping up prior to this announcement.
AutoZone’s fast delivery of high-quality products is expected to drive third-quarter fiscal 2019 results. Besides having a growing physical presence through store openings, emerging presence on its online platform is likely to add customers for its retail (DIY) and commercial (DIFM) businesses. Such initiatives will further improve sales and market share for the leading retailer and distributor of automotive replacement parts and accessories in the soon-to-be-released quarter.
However, investments in technology and store payroll increases are hurting AutoZone’s operating expenses. Also, opening of distribution centers, mega hubs and stores, along with remodeling of old ones, are likely to further raise the company’s expenses in the third quarter of fiscal 2019. Continuous rise in expenses will hurt the company’s bottom line.
Additionally, dependence on seasonality and weather conditions for product sales positions AutoZone in a difficult spot. Unfavorable conditions can affect the company’s top line while a favorable one can drive the same.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AutoZone this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Earnings ESP: AutoZone’s Earnings ESP is -0.35% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $15.18 and $15.23, respectively.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AutoZone currently carries a Zacks Rank of 2. This, when combined with negative Earnings ESP, makes prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into earnings announcement, especially when the company is witnessing negative estimate revisions.
Stock to Consider
Here is a stock worth considering as this comprises the right mix of elements to deliver an earnings beat this time around:
Deere & Company (DE - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank of 3. Its second-quarter fiscal 2019 results are set to be reported on May 17.
On Apr 30, Oshkosh Corporation (OSK - Free Report) announced second-quarter fiscal 2019 earnings. In the reported quarter, the company posted earnings per share of $1.82 while net sales were $2 billion. The quarterly figures for the company surpassed the respective Zacks Consensus Estimate. It currently carries a Zacks Rank of 2.
On Apr 30, Cummins Inc. (CMI - Free Report) announced first-quarter 2019 earnings. The company posted earnings per share of $4.20 and revenues of $6 billion. Its quarterly numbers beat the respective Zacks Consensus Estimate. It currently carries a Zacks Rank # 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
AutoZone (AZO) to Release Q3 Earnings: What's in Store?
AutoZone, Inc. (AZO - Free Report) is slated to report third-quarter fiscal 2019 (ended May 4, 2019) results on May 21, before the market opens. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. In fact, it recorded earnings beat in all of the trailing four quarters, the average earnings surprise being 8.1%.
In the past three months, AutoZone’s shares have outperformed the industry. The company’s shares gained 6.4% compared with the industry’s growth of 0.9%.
Let’s see how things are shaping up prior to this announcement.
AutoZone, Inc. Price and EPS Surprise
AutoZone, Inc. price-eps-surprise | AutoZone, Inc. Quote
Factors to Consider
AutoZone’s fast delivery of high-quality products is expected to drive third-quarter fiscal 2019 results. Besides having a growing physical presence through store openings, emerging presence on its online platform is likely to add customers for its retail (DIY) and commercial (DIFM) businesses. Such initiatives will further improve sales and market share for the leading retailer and distributor of automotive replacement parts and accessories in the soon-to-be-released quarter.
However, investments in technology and store payroll increases are hurting AutoZone’s operating expenses. Also, opening of distribution centers, mega hubs and stores, along with remodeling of old ones, are likely to further raise the company’s expenses in the third quarter of fiscal 2019. Continuous rise in expenses will hurt the company’s bottom line.
Additionally, dependence on seasonality and weather conditions for product sales positions AutoZone in a difficult spot. Unfavorable conditions can affect the company’s top line while a favorable one can drive the same.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AutoZone this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Earnings ESP: AutoZone’s Earnings ESP is -0.35% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $15.18 and $15.23, respectively.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AutoZone currently carries a Zacks Rank of 2. This, when combined with negative Earnings ESP, makes prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into earnings announcement, especially when the company is witnessing negative estimate revisions.
Stock to Consider
Here is a stock worth considering as this comprises the right mix of elements to deliver an earnings beat this time around:
Deere & Company (DE - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank of 3. Its second-quarter fiscal 2019 results are set to be reported on May 17.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Release
On Apr 30, Oshkosh Corporation (OSK - Free Report) announced second-quarter fiscal 2019 earnings. In the reported quarter, the company posted earnings per share of $1.82 while net sales were $2 billion. The quarterly figures for the company surpassed the respective Zacks Consensus Estimate. It currently carries a Zacks Rank of 2.
On Apr 30, Cummins Inc. (CMI - Free Report) announced first-quarter 2019 earnings. The company posted earnings per share of $4.20 and revenues of $6 billion. Its quarterly numbers beat the respective Zacks Consensus Estimate. It currently carries a Zacks Rank # 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>