Zacks Research Forecasts Increased Earnings for AutoZone

Key Points

• Zacks Research raised its FY2026 EPS estimate for AutoZone to $151.37 from $150.59, slightly above the current consensus estimate of $150.45 per share.
• AutoZone’s latest quarterly results beat earnings expectations, posting $38.07 EPS versus the $36.22 consensus, while revenue grew 8.4% year over year to $4.84 billion.
• The company announced a $1.5 billion share buyback plan, which would allow it to repurchase up to 3% of its stock and may signal management views the shares as undervalued.

AutoZone, Inc. (NYSE:AZO - Free Report) - Equities research analysts at Zacks Research boosted their FY2026 earnings per share (EPS) estimates for AutoZone in a research report issued to clients and investors on Wednesday, June 17th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $151.37 for the year, up from their previous forecast of $150.59. The consensus estimate for AutoZone's current full-year earnings is $150.45 per share. Zacks Research also issued estimates for AutoZone's Q1 2027 earnings at $37.78 EPS and Q2 2027 earnings at $32.61 EPS.

AutoZone (NYSE:AZO - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, topping the consensus estimate of $36.22 by $1.85. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.The business had revenue of $4.84 billion for the quarter, compared to analysts' expectations of $4.86 billion. During the same quarter in the previous year, the firm posted $35.36 earnings per share. The company's revenue was up 8.4% compared to the same quarter last year.

Several other research firms have also recently commented on AZO. Barclays increased their target price on AutoZone from $3,800.00 to $3,900.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Roth Mkm cut their price target on shares of AutoZone from $4,526.00 to $4,023.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. BMO Capital Markets reduced their price objective on shares of AutoZone from $4,300.00 to $4,000.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. BNP Paribas Exane dropped their target price on shares of AutoZone from $4,478.00 to $3,979.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Finally, Truist Financial set a $3,700.00 target price on shares of AutoZone in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $4,040.87.

AutoZone Stock Down 2.2%

AZO stock opened at $3,058.27 on Thursday. AutoZone has a 52-week low of $2,928.11 and a 52-week high of $4,388.11. The stock's 50 day moving average is $3,348.30 and its two-hundred day moving average is $3,493.73. The company has a market capitalization of $49.94 billion, a PE ratio of 21.03, a P/E/G ratio of 1.59 and a beta of 0.35.

Institutional Investors Weigh In On AutoZone

Several institutional investors and hedge funds have recently bought and sold shares of AZO. Parallel Advisors LLC lifted its holdings in AutoZone by 3.2% in the first quarter. Parallel Advisors LLC now owns 255 shares of the company's stock worth $862,000 after acquiring an additional 8 shares during the last quarter. First Nebraska Trust Co bought a new position in shares of AutoZone during the first quarter valued at approximately $1,996,000. Asset Dedication LLC raised its position in shares of AutoZone by 150.0% during the 1st quarter. Asset Dedication LLC now owns 10 shares of the company's stock worth $34,000 after purchasing an additional 6 shares during the period. Carlson Capital L.P. raised its position in shares of AutoZone by 200.0% during the 1st quarter. Carlson Capital L.P. now owns 600 shares of the company's stock worth $2,027,000 after purchasing an additional 400 shares during the period. Finally, Groupama Asset Managment lifted its holdings in shares of AutoZone by 16.8% in the 1st quarter. Groupama Asset Managment now owns 153 shares of the company's stock worth $517,000 after purchasing an additional 22 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

Insiders Place Their Bets

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of AutoZone stock in a transaction on Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total value of $173,936.00. Following the completion of the transaction, the director owned 4,837 shares of the company's stock, valued at $16,826,568.64. The trade was a 1.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Brian Hannasch bought 165 shares of the company's stock in a transaction on Friday, May 29th. The shares were acquired at an average cost of $2,987.00 per share, for a total transaction of $492,855.00. Following the completion of the acquisition, the director directly owned 1,219 shares of the company's stock, valued at $3,641,153. This trade represents a 15.65% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 2.60% of the company's stock.

AutoZone declared that its board has initiated a share buyback plan on Tuesday, June 16th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the company to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

About AutoZone

AutoZone, Inc NYSE: AZO is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.

AutoZone serves both do‑it‑yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.

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