Earnings Preview: AutoZone Still Running on All Cylinders

AutoZone

is scheduled to report fiscal third-quarter 2011 results before the opening bell on Tuesday, May 24. Analysts expect the specialty retailer to announce that earnings came to $4.99 per share. The consensus estimate was $4.85 per share 90 days ago, and per-share earnings came in at $4.12 in the same period of last year. Note that, in recent quarters, analysts have underestimated earnings; the beat was by 27 cents per share in the second quarter. Memphis-based AutoZone is the nation's largest supplier of automotive replacement parts and accessories. More than 4,300 stores offer its products primarily do-it-yourself customers, but the company also delivers parts and products to local, regional and national repair garages, dealers, service stations and public sector accounts. During the third quarter, AutoZone said it would repurchase shares and open stores in Mexico. The revenue forecast for that period calls for $1.9 billion, which is an increase of 5.4% from the same period of last year. The company has a long-term earnings per share growth forecast of 13.6% and a price/earnings-to-growth ratio of 1.0%. The share price has pulled back about 4% from a recent all-time high of $288.50 per share. Over the past year, the stock has outperformed the broader markets and competitors Advance Auto Parts

, O'Reilly Automotive

and Pep Boys

.