Written by Sinad Karahimetovic
Shares of AutoZone (NYSE:) rose nearly 3% after the company reported better-than-expected results.
AZO reported an FQ4 of $40.51 on revenue of $5.3 billion to beat the consensus of $38.51 on sales of $5.15 billion. Comparative sales came in at +6.2%, much better than the consensus of +3.17%.
“The investments we have made in both inventory availability and technology strengthen our competitive position. We are optimistic about the growth prospects heading into our new fiscal year,” said CEO Bill Rhodes.
The Goldman Sachs analyst is not surprised that AZO is trading higher in pre-market on Monday “as we believe investors are looking at the company’s strong DIFM sales growth positively.”
“We estimate that same-store sales in DIFM increased 20.9% year-over-year, while DIY increased 0.7%,” the analyst added in a note.
An analyst at Evercore ISI added: “AutoZone’s fiscal year 4Q (May-August) results show they’re developing the main line and winning share. Gross margin pressure shows inflation is going through a lag.”