Editor's Picks

AutoZone, Inc. (NYSE:AZO) Earnings Preview and Analyst Upgrade

  • AutoZone is set to release its quarterly earnings on May 27, 2025, with an estimated EPS of $36.78 and projected revenue of $4.41 billion.
  • Analyst Robert F. Ohmes from BofA Securities upgraded AutoZone to Buy, raising the price target from $3,900 to $4,800.
  • Ohmes projects an EPS of $38.15 for the third quarter, surpassing the consensus estimate, with domestic comparable sales growth expected at 2.0%.

AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company serves both DIY customers and professional service providers, offering a wide range of products. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O’Reilly Automotive.

On May 27, 2025, AutoZone is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $36.78 and projected revenue of approximately $4.41 billion. Analyst Robert F. Ohmes from BofA Securities has upgraded AutoZone from Neutral to Buy, raising the price target from $3,900 to $4,800. This upgrade is based on AutoZone’s ability to perform well during economic downturns and its market share gains in both the DIY and professional segments.

Ohmes projects an EPS of $38.15 for AutoZone’s third-quarter results, surpassing the consensus estimate of $36.80. He also anticipates domestic comparable sales growth of 2.0%, slightly below the consensus of 2.4%. The analyst highlights the potential benefits from price increases due to inflation and the improving dynamics in the used versus new car market, which could positively impact AutoZone’s performance.

AutoZone’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 25.53, indicating how the market values its earnings. Its price-to-sales ratio is about 3.46, reflecting the value investors place on its sales. The enterprise value to sales ratio is around 4.10, suggesting the market’s valuation of the company relative to its sales, including debt.

The company’s enterprise value to operating cash flow ratio is approximately 24.44, indicating its valuation in relation to cash flow from operations. AutoZone’s earnings yield is about 3.92%, providing insight into the return on investment for shareholders. The debt-to-equity ratio of approximately -2.77 highlights its capital structure and financial leverage, while a current ratio of around 0.84 suggests its ability to cover short-term liabilities with short-term assets.

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