The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how AutoZone (NYSE:AZO) and the rest of the auto parts retailer stocks fared in Q4.
Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles.
The 5 auto parts retailer stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.4% since the latest earnings results.
Weakest Q4: AutoZone (NYSE:AZO)
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $4.28 billion, up 2.1% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates and EBITDA in line with analysts’ estimates.
“I would like to thank all our AutoZoners across the globe for their efforts in helping us deliver solid first quarter results. We were pleased with the progress in our DIY same store sales result from the prior quarter as average ticket and traffic trends improved. Our domestic Commercial sales were up 3.2% and we were encouraged by the improving trends seen at the end of the quarter. Our international businesses continued to perform well with same store sales up just under 14% on a constant currency basis. While currency rate moves depressed reported sales and earnings growth, our international performance remains encouraging as we continue to focus on opening more stores in these markets. We feel we are well positioned for growth heading into the remainder of the fiscal year, as we believe the initiatives we have in place to improve customer service and grow market share are on track. As we continue to invest in our business, we remain committed to our disciplined approach of a focus on increasing earnings and operating cash flow, all while delivering strong shareholder value,” said Phil Daniele, President and Chief Executive Officer.
The stock is up 5.2% since reporting and currently trades at $3,500.
Is now the time to buy AutoZone? Access our full analysis of the earnings results here, it’s free.
Best Q4: Genuine Parts (NYSE:GPC)
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.77 billion, up 3.3% year on year, outperforming analysts’ expectations by 1%. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $122.51.
Is now the time to buy Genuine Parts? Access our full analysis of the earnings results here, it’s free.
Advance Auto Parts (NYSE:AAP)
Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Advance Auto Parts reported revenues of $2.00 billion, flat year on year, exceeding analysts’ expectations by 2.9%. It was a satisfactory quarter as it also posted full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 22.4% since the results and currently trades at $35.65.
Read our full analysis of Advance Auto Parts’s results here.
O'Reilly (NASDAQ:ORLY)
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
O'Reilly reported revenues of $4.10 billion, up 6.9% year on year. This result topped analysts’ expectations by 1.2%. More broadly, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations and a miss of analysts’ EBITDA estimates.
O'Reilly scored the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 2.6% since reporting and currently trades at $1,381.
Read our full, actionable report on O'Reilly here, it’s free.
Monro (NASDAQ:MNRO)
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $305.8 million, down 3.7% year on year. This print came in 1.5% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.
Monro had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 20.6% since reporting and currently trades at $17.47.
Read our full, actionable report on Monro here, it’s free.
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