What to Expect When AutoZone Reports Earnings

AutoZone Inc. (NYSE: AZO) is set to report its fiscal third-quarter financial results before the markets open on Tuesday. Thomson Reuters consensus estimates are $10.92 in earnings per share (EPS) on $2.65 billion in revenue. In the same period of last year, the company posted EPS of $9.57 and $2.49 billion in revenue.

This company made a big move earlier this quarter when it initiated a sizable buyback plan. The company announced that its board of directors authorized the repurchase of an additional $750 million of the common stock in connection with its ongoing share repurchase program.

Since the inception of the repurchase program in 1998, and including the $750 million, AutoZone’s board of directors has authorized a grand total of $17.2 billion in share repurchases. Keep in mind that AutoZone has a market cap of roughly $22 billion.

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Prior to the release of the earnings report, a few analysts weighed in on AutoZone:

• Sterne Agee CRT reiterated a Neutral rating.
• Argus reiterated a Buy rating.
• Gabelli reiterated a Buy rating with a $935 price target.
• Deutsche Bank reiterated a Hold rating.

So far in 2016, AutoZone has outperformed the broad markets, with the stock up about 4%. Over the past 52 weeks, the stock is up 10%.

Shares of AutoZone were trading down 1.7% at $748.40 on Monday, with a consensus analyst price target of $853.00 and a 52-week trading range of $662.70 to $810.00.