AutoZone’s net income jumps to £332 million in Q1 despite COVID-19 restrictions

Written by: Wajeeh Khan
December 8, 2020
  • AutoZone’s net income jumps to £332 million in Q1 despite COVID-19 restrictions.
  • The aftermarket car parts and accessories retailer reports £2.37 billion of sales.
  • The Memphis-based company opened 39 new U.S. stores in the first quarter.

AutoZone Inc. (NYSE: AZO) published its financial results for the fiscal first quarter on Tuesday that topped analysts’ estimates for earnings and revenue, despite the ongoing Coronavirus pandemic that raised novel challenges in recent months. AutoZone had also topped Wall Street estimates in the prior quarter (Q4).

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AutoZone’s Q1 financial results versus analysts’ estimates

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AutoZone said that its net income in the quarter that concluded on 21st November came in at £332 million that translates to £13.97 per share. In the same quarter last year, its net income was capped at a much lower £262.69 million or £10.73 per share.

The aftermarket automotive parts and accessories retailer said that it generated £2.37 billion of sales in the recent quarter versus the year-ago figure £2.10 billion. According to FactSet, experts had forecast the company to post £2.36 billion of sales in Q1. Their estimate for per-share earnings stood at £13.36.

CEO Bill Rhodes commented on the earnings report on Tuesday and said:

“As the COVID-19 global pandemic continues, our primary focus has been and continues to be the health, wellness and safety of our customers and AutoZoners.”

The COVID-19 crisis has so far infected more than 15 million people in the United States and caused a little under 300 thousand deaths. In an announcement last month, AutoZone said that its Senior Vice President, Ron Griffin, will retire in early 2021.

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AutoZone opened 39 new U.S. stores in the first quarter

AutoZone also highlighted on Tuesday that costs attributed to emergency time off that it was offering to its workers stood at £37.52 million. The Memphis-based company expressed plans of extending this program through much of the new year as well.

As per AutoZone, it opened two new stores in Brazil in the first quarter and 39 in the United States. As of the end of Q1, AutoZone had 45 stores in Brazil, and 5,924 stores in the U.S. The retailer also has an additional 621 stores in Mexico.

At the time of writing, AutoZone is valued at £20.13 billion and has a price to earnings ratio of 16.09.