WionDrive News Desk 
AutoZone surpassed profit expectations for the third quarter, driven by huge demand for automotive parts as more Americans chose to keep their aging vehicles amidst higher prices and extended wait times for newer models.
The auto parts supplier, which competes with Advance Auto Parts and O’Reilly Automotive, reported a 3.5% increase in quarterly net sales, reaching approximately $4.24 billion.
However, this fell short of analysts’ average projection of $4.29 billion in third-quarter net sales for AutoZone. On an adjusted basis, the company’s earnings per share for the quarter ended May 4 stood at $36.69, exceeding analysts’ estimates of $35.96 per share, according to LSEG data.
Nonetheless, domestic same-store sales during the quarter remained unchanged from the previous year.
Earlier this week, AutoZone’s stock experienced a decline following the announcement, suggesting investor disappointment with the outcome. The stock lost around 4% during the early hours of Tuesday’s trading session. Considered one of the most expensive stocks on Wall Street, AutoZone’s highest value of $3,239.32 was recorded in March
In the three months ended April 30, 2024, AutoZone generated revenues of $4.24 billion, a 4 percent increase from the same period in fiscal 2023, but below analysts’ estimates. Total same-store sales, encompassing both domestic and international stores open for at least one year, rose 1.9 percent during the three months. Q3 net income grew to $651.7 million or $36.69 per share, up from $647.7 million or $34.12 per share in the corresponding period last year. Over the past five years, the company’s quarterly earnings have consistently outperformed estimates.
As part of its efforts to boost sales, AutoZone is expanding store capacity and streamlining its distribution network. Over the past year, elevated inflation has somewhat impacted store traffic, but improvements are expected in the coming months as inflationary pressures ease and economic conditions stabilise.
AutoZone’s shares had lost about 13% since their March peak. The stock traded lower throughout Tuesday, opening the session at $2,877.15. Accelerating store growth remains a key strategy for the company’s leadership. The continued strong momentum in used car sales is a positive factor for the company, as it drives demand for spare parts.
