AutoZone stock (AZO:NYE) has reported strong financial results for the fiscal second quarter of FY23, exceeding analysts’ expectations. The retailer of aftermarket automotive parts and accessories reported earnings of $24.64 per share, up from $22.30 in the same period last year and beating the consensus estimate of $21.64 per share.
AutoZone’s Q2 sales reached $3.7 billion, a 9.5% increase from the previous year and surpassing analysts’ projections by $130 million. The company’s same-store sales in the U.S. grew by 5.3% in Q2, indicating healthy demand for its products.
However, AutoZone’s inventory rose by 13.9% year-over-year in the second quarter due to inflation, resulting in a net inventory of negative $227,000.
During the second quarter, AutoZone repurchased 372,000 shares for $906 million at an average price of $2,434 per share. As of the end of Q2, the company still had $1.8 billion remaining under its current stock buyback program.
Additionally, AutoZone opened 30 new stores in the U.S., one in Mexico, and five in Brazil during the second quarter, demonstrating its continued growth in the global market.
Despite its positive financial results, Wall Street analysts remain cautious about Autozone stock. The current consensus rating for the stock is a Strong Buy, while the 12-month stock price target is $2546.75.
Overall, AutoZone’s impressive Q2 results and strategic expansion indicate its potential for long-term growth in the automotive industry.