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Preview: AutoZone's Earnings

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AutoZone (NYSE:AZO) announces its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict AutoZone will report earnings of $12.84 per share on revenue of $2.76 billion. In the same quarter last year, AutoZone reported EPS of $12.39 on revenue of $2.51 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 3.63%. Revenue would be up 9.79% from the same quarter last year. AutoZone's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 17.77 24.79 13.68 11.80
EPS Actual 18.61 30.93 14.39 12.39
Revenue Estimate 3.16 B 4.15 B 2.67 B 2.57 B
Revenue Actual 3.15 B 4.55 B 2.78 B 2.51 B

Stock Performance

Shares of AutoZone were trading at $1162.91 as of February 26. Over the last 52-week period, shares are up 14.68%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AutoZone is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings