Latest news with #AutoZone
Yahoo
4 hours ago
- Business
- Yahoo
Making Sense of Q2 Earnings Expectations
We count the Costco COST and AutoZone AZO releases for their respective fiscal quarters ending in May as part of our June-quarter tally. As such, the AutoZone and Costco quarterly reports have kicked off the Q2 earnings season for us, even though we still have a few Q1 earnings releases to await. In fact, by the time the big banks put the spotlight on the Q2 reporting cycle by releasing their June-quarter results on July 14th, we will have seen such May-quarter results from more than two dozen S&P 500 members. Costco handily beat consensus estimates for earnings, revenues, and same-store sales (comps). Same-store sales for the quarter were up +8%, excluding gasoline and the impact of foreign exchange fluctuations. This follows +9.1% comp growth in the preceding period relative to estimates of +6.3%. Of particular significance is the high single-digit comp growth in Costco's non-food merchandise, which can be compared to the discretionary or general merchandise categories at other retailers, such as Walmart and Target. A significant part of Costco's discretionary strength likely reflects the retailer's high-income customer base, but it is also likely gaining market share in these product categories. Costco continues to execute well despite the tariff challenges. Management reiterated on the call that merchandise at the domestic business is mostly sourced from within the U.S., with only about a quarter of Costco U.S. sales dependent on imports. Looking beyond Costco and AutoZone, the expectation is for Q2 earnings for the S&P 500 index to increase by +5.4% from the same period last year on +3.7% higher revenues. This will be a material deceleration from the +12% earnings growth in Q1 on +4.7% revenue growth. We have been regularly flagging in recent weeks that 2025 Q2 earnings estimates have been steadily decreasing, as shown in the chart below. Image Source: Zacks Investment Research The magnitude of cuts to 2025 Q2 estimates since the start of the period is bigger and more widespread relative to what we have become used to seeing in the post-COVID period. Since the start of April, Q2 estimates have declined for 15 of the 16 Zacks sectors (Aerospace is the only sector whose estimates have increased), with the largest cuts to the Transportation, Autos, Energy, Basic Materials, and Construction sectors. Estimates for the Tech and Finance sectors, the largest contributors to the S&P 500 index, which account for more than 50% of all index earnings, have also been cut since the quarter began. But as we have been pointing out in recent weeks, the revisions trend for the Tech sector has notably stabilized, which you can see in the chart below. Image Source: Zacks Investment Research We see this same trend at play in annual estimates as well. The chart below shows the Tech sector's evolving earnings expectations for full-year 2025 Image Source: Zacks Investment Research A likely explanation for this stabilization in the revisions trend is the easing in the tariff uncertainty after the more punitive version of the tariff regime was delayed. Analysts started revising their estimates lower in the immediate aftermath of the early April tariff announcements, but appear to have since concluded that those punitive tariff levels are unlikely to get levied, helping stabilize the revisions trend. The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding 5 quarters and the coming two quarters. Image Source: Zacks Investment Research The chart below shows the overall earnings picture on a calendar-year basis. Image Source: Zacks Investment Research The Q1 Earnings Scorecard As we noted earlier, the Q1 earnings season isn't over yet. Through Friday, May 30th, we have seen Q1 results from 490 S&P 500 members or 98% of the index's total membership. Total earnings for these 490 index members that have reported results are up +11.9% from the same period last year on +4.8% revenue gains, with 74.1% of the companies beating EPS estimates and 63.3% beating revenue estimates. The comparison charts below put the Q1 earnings and revenue growth rates for these index members in a historical context. Image Source: Zacks Investment Research The comparison charts below put the Q1 EPS and revenue beats percentages in a historical context. Image Source: Zacks Investment Research As you can see here, the EPS and revenue beats percentages are tracking below historical averages, with the Q1 EPS beats percentage of 74.1% comparing to the average for the same group of 78.4% over the preceding 20-quarter period (5 years). The Q1 revenue beats percentage of 63.3% compares to the 5-year average for this group of index members of 71.2%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
7 hours ago
- Automotive
- Yahoo
If There's Such a Thing as a Recession-Resistant Stock, This Is It
People need car parts in good times and bad. Sales jumped 5.4% in AutoZone's most recent quarter. The company strengthens shareholders' stake by buying back its own shares. 10 stocks we like better than AutoZone › Since the dawn of the financial markets, investors have been on a mythical quest for a stock that can weather any storm, delivering solid returns in boom times and busts. If such a stock exists, you won't find it in some high-flying tech portfolio. The ultimate recession-resistant stock might be this blue-collar overachiever that keeps grinding out strong results in good times, bad times, and every pit stop in between. You don't have to be a car enthusiast to hear the phrase "get in the zone" and complete it in your head. AutoZone (NYSE: AZO) -- a leading national auto parts retailer -- enjoys strong brand recognition thanks partly to its catchy, ubiquitous jingle. But among automotive repair technicians and DIYers, AutoZone is best-known as a trusted source of replacement parts and advice. J.R. "Pitt" Hyde III founded AutoZone in 1979, and his business model was simple: Provide excellent customer service in clean, well-organized auto parts stores. From its humble beginnings as a lone "Auto Shack" outlet in Forrest City, Arkansas, AutoZone today has 6,500 locations across the United States and a growing store count in Mexico and Brazil. The retailer's fiscal 2024 -- which ended Aug. 31, 2024 -- provided typical, steady-as-she-goes AutoZone performance: Year-over-year net sales were up nearly 6% to $18.5 billion, while earnings per share jumped 13% to $149.55. Fast-forward to the third quarter of fiscal 2025 (which ended May 10), and AutoZone just keeps humming along. Net sales were up 5.4% to $4.5 billion, while domestic same-store sales -- a key metric for retailers -- were up 5%. While earnings per share in the quarter dipped 3.6% from the year-ago period, the decline hasn't been due to weakening demand or some operational misstep. Instead, it reflects AutoZone's aggressive investments in growth -- expanding distribution capacity, opening new stores, and scaling its commercial and international businesses. Much of AutoZone's investments have been aimed squarely at capturing more market share in the commercial, or DIFM (do-it-for-me), space. The company has been ramping up delivery capabilities, adding dedicated sales staff, and opening more "mega-hub" stores to support professional repair shops with faster, broader parts availability. While these investments have put some pressure on margins, AutoZone's leadership has made it clear they're playing the long game -- and the payoff could be substantial. As economic worries continue to disquiet investors, AutoZone shines as a steady leader in one of the most recession-resistant corners of the retail world: the automotive aftermarket. Valued at more than $2.3 trillion globally, the automotive aftermarket includes all automotive goods and services purchased after you buy a vehicle. That could run the gamut from oil and a new set of spark plugs to neon ground lights, a fuzzy steering wheel cover, and headlight eyelashes that flutter in the wind (because why not?). Fuzzy steering wheel covers aside, the automotive aftermarket benefits from a concept known as inelastic demand. That means people tend to buy certain goods and services no matter what the broader economy is doing. If your brakes are shot or your battery is dead -- and you're a do-it-yourselfer -- you're not waiting for the Fed to lower interest rates. You're headed straight to an auto parts supplier like AutoZone. While some purchases (like that 8-foot spoiler for your Toyota Camry) can be deferred, most aftermarket spending is tied to keeping vehicles safely on the road. That makes AutoZone's core business remarkably resilient, even when consumer confidence is running on fumes. And if people are more worried about the economy or suffering a job loss or high inflation, they might be keeping their cars longer, and thus requiring more maintenance that they do themselves or hire a professional to accomplish. Key indicators for the aftermarket are trending in AutoZone's favor. New data from S&P Global Mobility shows that the average age of vehicles on U.S. roads has climbed to a record 12.8 years in 2025. With 299 million vehicles on the road -- an all-time high -- America's fleet of cars is massive and aging, which is right in the aftermarket's sweet spot. The takeaway for investors? AutoZone is well-positioned to benefit from steady, structural demand regardless of what's happening in the broader economy. In addition to its recession-resistant business, there's another reason AutoZone merits consideration by investors: its relentless share buyback program. For decades, the company has been scooping up its own stock like it's on the closeout rack. Since 1998, AutoZone has repurchased more than $38 billion worth of its own shares. Over the past decade, AutoZone has cut its shares outstanding nearly in half, meaning profits are divided among a smaller group, and it's been buying back shares in the best of times and the worst of times. As of its latest quarter, the company still had $1.1 billion left in its current buyback authorization. Trading at a forward price-to-earning ratio around 25 -- well below competitor O'Reilly Auto Parts' 31 -- AutoZone looks reasonably valued, especially considering its long runway for growth in the DIFM space. The Auto Care Association estimates that the U.S. automotive aftermarket will be a $617 billion industry by 2027, and AutoZone is laser-focused on growing its 5% DIFM market share. The company has a huge opportunity. With a track record of consistent financial performance, a steadily shrinking share count, and the benefit of inelastic demand, AutoZone is built to last, and built to outperform in just about any environment. Before you buy stock in AutoZone, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AutoZone wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Josh Cable has positions in AutoZone. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. If There's Such a Thing as a Recession-Resistant Stock, This Is It was originally published by The Motley Fool Inicia sesión para acceder a tu portafolio
Yahoo
21 hours ago
- Business
- Yahoo
These Walmart Price Hikes Are Going Viral After Trump Told The Chain To "EAT THE TARIFFS"
In mid-May, Walmart announced that price hikes were coming due to President Trump's tariffs. Other brands like Best Buy, AutoZone, and Adidas have also said they'll have to raise prices because the tariffs will increase their costs of doing business. Trump, who has repeatedly claimed that other countries such as China would pay for the tariffs, responded with a post on his Truth Social platform urging Walmart to "EAT THE TARIFFS." The company, which reported $684.2 billion in sales in 2024, has declined to forecast how it might perform in the current quarter of 2025 due to the uncertainty posed by the tariffs. Well, just a couple weeks later, we're starting to see some higher prices rolling in. Walmart employees and shoppers are sharing the price hikes they've spotted in the wild. I confirmed these prices on the Walmart website with links throughout. As of the time of writing, all prices seen in these images are correct (with one exception that's now priced even higher online). Here are some of the most viral examples of these price hikes so far: doll went from $34.97 to $49.97. fishing reel went from $57.37 to $83.26. this roll of tape went from $4.24 to $9.94. The employee who posted this wrote, "The tariffs are tariffing." to a customer's receipt saved in the Walmart app, this heating pad went from $19.98 to $24.96 on the website today. this 8 pack of Play-Doh went from $5.64 to $7.47. tablet jumped from $79 to $97. this snap from a toy aisle in Asheville, North Carolina, shows prices on a Never Dry Dough Creation Station, an Etch a Sketch, and a Lite Brite Magic Screen set going from $19.97, $14.97, and $14.97 to $24.97, $24.99, and $21.97, respectively. The Lite Brite is currently listed on Walmart's website for $30.99. And finally, a Walmart employee on Reddit shared this screenshot of the price changes underway at their location: Have you noticed prices going up at your local Walmart? Share your photos and receipts in the comments or email them to me.
Yahoo
a day ago
- Automotive
- Yahoo
Jim Cramer Says to 'Just Go Buy It' AutoZone, Inc. (AZO) Stock
We recently published a list of . In this article, we are going to take a look at where AutoZone, Inc. (NYSE:AZO) stands against other stocks that Jim Cramer discusses. Cramer started his game plan for this week with AutoZone, Inc. (NYSE:AZO) as he commented: 'We have some high-profile companies reporting on Tuesday. Now we start with one of the top performers of the year, and that's a company called AutoZone, AZO. This auto parts chain has been on fire, and it doesn't hurt that AutoZone has one of the most aggressive buybacks I have ever seen. They've more than cut half of the stock… in the last decade. If the stock gets hit, please do this, you should just go buy it because management will be right there alongside you buying it after a few days. What a horse.' A technician in a mechanic's uniform replacing an A/C compressor, signifying the company's automotive replacement parts business. AutoZone, Inc. (NYSE:AZO) provides a wide range of automotive replacement parts and accessories. The company's products include hard parts, maintenance supplies, and items unrelated to vehicles. Overall, AZO ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AZO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AZO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
These Walmart Price Hikes Are Going Viral After Trump Told The Chain To "EAT THE TARIFFS"
In mid-May, Walmart announced that price hikes were coming due to President Trump's tariffs. Other brands like Best Buy, AutoZone, and Adidas have also said they'll have to raise prices because the tariffs will increase their costs of doing business. Trump, who has repeatedly claimed that other countries such as China would pay for the tariffs, responded with a post on his Truth Social platform urging Walmart to "EAT THE TARIFFS." The company, which reported $684.2 billion in sales in 2024, has declined to forecast how it might perform in the current quarter of 2025 due to the uncertainty posed by the tariffs. Well, just a couple weeks later, we're starting to see some higher prices rolling in. Walmart employees and shoppers are sharing the price hikes they've spotted in the wild. I confirmed these prices on the Walmart website with links throughout. As of the time of writing, all prices seen in these images are correct (with one exception that's now priced even higher online). Here are some of the most viral examples of these price hikes so far: doll went from $34.97 to $49.97. fishing reel went from $57.37 to $83.26. this roll of tape went from $4.24 to $9.94. The employee who posted this wrote, "The tariffs are tariffing." to a customer's receipt saved in the Walmart app, this heating pad went from $19.98 to $24.96 on the website today. this 8 pack of Play-Doh went from $5.64 to $7.47. tablet jumped from $79 to $97. this snap from a toy aisle in Asheville, North Carolina, shows prices on a Never Dry Dough Creation Station, an Etch a Sketch, and a Lite Brite Magic Screen set going from $19.97, $14.97, and $14.97 to $24.97, $24.99, and $21.97, respectively. The Lite Brite is currently listed on Walmart's website for $30.99. And finally, a Walmart employee on Reddit shared this screenshot of the price changes underway at their location:
