On Tuesday, Jefferies reaffirmed its Buy rating on shares of AutoZone (NYSE:AZO) with a steady price target of $3,500.00. The firm's analyst highlighted AutoZone's first-quarter fiscal year 2025 performance, noting sales and earnings per share (EPS) of $4.28 billion and $32.52 respectively.
These figures slightly missed Jefferies' estimates of $4.30 billion in sales and $33.49 EPS and were also marginally below the consensus estimates of $4.30 billion for sales and $33.65 for EPS.
Year-over-year, AutoZone's domestic comparable store sales saw a modest increase of 0.3%, which was below both Jefferies' projection of 0.5% and the consensus estimate of 0.6%. This growth was attributed to a 3.2% rise in commercial sales.
However, the company experienced a contraction in adjusted operating margin, which fell by 60 basis points from the previous year to 19.7%. This is slightly above Jefferies' expectation of a 19.6% operating margin.
The report also indicated that further information regarding AutoZone's performance and future outlook would be provided during the company's conference call scheduled for 10:00 AM ET. This call is expected to offer additional insights into the factors influencing the company's quarterly results and possibly provide guidance for the upcoming quarters.
AutoZone's stock performance and investor sentiment are closely tied to these financial results and the company's ability to meet or exceed market expectations. The maintenance of the Buy rating by Jefferies suggests confidence in AutoZone's business model and its potential for growth despite the marginal shortfalls in this quarter's financials.
Investors and market watchers will be paying close attention to the details that emerge from the conference call, which could further elucidate AutoZone's strategies for maintaining profitability and expanding its market share in the competitive auto parts industry.
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