Overview

• Auto parts retailer's Q2 revenue rose 8.1% yr/yr, slightly missing analyst expectations

• EPS for Q2 beat analyst expectations

• Company opened 64 new stores globally in Q2

Outlook

• Company plans to open 350-360 stores globally for the fiscal year

• AutoZone focuses on gaining market share in Mexico and Brazil

• Company remains committed to increasing earnings and cash flows

Result Drivers

• STORE EXPANSION - AutoZone opened 64 net new stores globally, contributing to sales growth

• INTERNATIONAL SALES - International same-store sales grew 17.1%, driven by market share gains in Mexico and Brazil

• INVENTORY MANAGEMENT - Inventory increased 13.1% due to growth initiatives and inflation

Company press release: ID:nGNXc0kxgn

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Slight Miss*	$4.27 bln	$4.31 bln (20 Analysts)
Q2 EPS	Beat	$27.63	$27.13 (23 Analysts)
Q2 Net Income	Beat	$468.86 mln	$460.22 mln (19 Analysts)
Q2 Operating profit	Slight Beat*	$698.46 mln	$696.71 mln (20 Analysts)
Q2 Gross Profit		$2.24 bln
Q2 Pretax Profit		$591.25 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Autozone Inc is $4,271.00, about 10% above its March 2 closing price of $3,882.47

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

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