AutoZone gears up to report Q3 earnings: Here's what to expect

AutoZone, Inc. is slated to release third-quarter fiscal 2025 results on May 27, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $36.78 and $4.4 billion, respectively.

For the fiscal third quarter, the consensus estimate for AutoZone’s earnings has moved down 10 cents in the past 30 days. Its bottom-line estimates imply 0.25% growth from the year-ago reported numbers. 

The Zacks Consensus Estimate for AZO's quarterly revenues implies year-over-year growth of 3.95%. The company's earnings beat estimates in one of the trailing four quarters and missed thrice, delivering an average negative surprise of 3.23%.

AutoZone, Inc. price and EPS surprise

AutoZone, Inc. price-eps-surprise | AutoZone, Inc. Quote

Highlights of AZO’s fiscal Q2 results

In the second quarter of fiscal 2025, AZO’s adjusted EPS of $28.29 missed the Zacks Consensus Estimate of $29.16 and decreased from $28.89 reported in the year-ago quarter. The company reported net sales of $3.95 billion, which missed the Zacks Consensus Estimate of $3.99 billion but rose 2.4% year over year. 

Things to note ahead of AZO’s Q3 release

AutoZone has achieved record sales for 35 consecutive years. Its fiscal 2024 revenues of $18.5 billion rose 5.7% year over year. The company expects continued growth in fiscal 2025, driven by strong DIY and commercial business performance with expanded coverage and improved parts availability. We expect its same-store growth, which represents the revenue generated by a company’s existing locations during a specific time compared with the same period from the previous year, to be 1.3% in the fiscal third quarter.

The focus on increasing its market penetration via the expansion of mega hubs has been boosting AZO’s prospects. With 111 mega hub locations at the end of the second quarter of fiscal 2025, AutoZone is halfway through its objective of establishing more than 200 mega hubs. It anticipates opening at least 19 more locations in the third and fourth quarters of fiscal 2025. The company expects to open around 100 international stores in fiscal 2025. 

Strength in DIY and commercial business performance, expected same-store sales growth and store expansion efforts in fiscal 2025 are likely to have boosted the company’s top-line growth in the to-be-reported quarter.

Want the latest recommendations from Zacks Investment Research? Download 7 Best Stocks for the Next 30 Days. Click to get this free report