What Investors Need to Know From AutoZone, Inc.'s 4th quarter
The market had a tough time digesting AutoZone, Inc.'s (NYSE: AZO) fourth-quarter earnings result Tuesday. Initially,
after management released results, the market sent shares up roughly 4% before those gains immediately reversed into a 5.6% decline by the end of the day. Despite shares rising consistently for much of the past decade, AutoZone's stock price has shed nearly a third of its value in 2017. Yet there were signs of life within its fourth-quarter results -- here are some highlights and takeaways.
AutoZone was able to shake off slower than anticipated sales earlier this year with a modest 3.3% increase in net sales to $3.5 billion during the fourth quarter. That was just slightly above analysts' estimates calling for $3.49 billion, and the result was partly driven by a 1% increase in comparable store sales. Earnings per share jumped 6.8% to $15.27, up from the prior year's $14.30 per share. Yet excluding a $0.09 per-share benefit from a new accounting standard, adjusted earnings per share checked in at $15.18. That was good enough to top analysts' estimates calling for $15.12 per share. With those figures out of the way, here are a couple of takeaways from the data.
Source: Fool.com