AutoZone (NYSE: $AZO) Set for Q3 Earnings Report Before the BellAutoZone, Inc. (NYSE: NYSE:AZO ), the leading auto parts and accessories retailer, is set to report its third-quarter results today, Tuesday, September 24th, 2024, before the market opens. Investors and analysts alike are closely watching for key insights into the company’s performance, as the automotive retail sector braces for a pivotal earnings season.
Earnings Expectations and Revenue Outlook
Last quarter, AutoZone (NYSE: NYSE:AZO ) reported revenues of $4.24 billion, a 3.5% year-on-year increase but still falling 1.3% short of analysts' expectations. The company’s gross margins slightly beat forecasts, but weaker-than-expected same-store sales led to a revenue miss. Despite these mixed results, AutoZone (NYSE: NYSE:AZO ) has managed to retain investor confidence, with many analysts reaffirming their projections over the past month. This quarter, analysts expect AutoZone (NYSE: NYSE:AZO ) to generate revenue of $6.22 billion, representing a 9.3% growth year-on-year. Adjusted earnings are anticipated to come in at $53.55 per share, a significant improvement over last year’s $46.46.
AutoZone (NYSE: NYSE:AZO ) has had a history of occasionally missing revenue estimates, with three misses over the last two years, keeping analysts and investors cautious as they await today’s results. Nonetheless, AutoZone's stock has only fallen 4.3% over the past month, indicating that shareholders remain steady in the face of uncertainty.
Key Drivers: Share Repurchases and Growth Projection
In addition to its core earnings, AutoZone's recent financial maneuvers have bolstered investor confidence. The company’s board of directors approved an additional $1.5 billion share repurchase on June 19, further enhancing shareholder value. AutoZone’s consistent buyback program indicates confidence in its long-term outlook, a signal many investors have taken to heart.
As the first automotive retail company to report earnings this season, AutoZone is in the spotlight. The industry has faced numerous challenges this year, from supply chain disruptions to fluctuating consumer demand. However, the anticipated rise in revenue, driven by steady demand for automotive parts and accessories, positions AutoZone to stand out.
Moreover, in light of advancements in artificial intelligence, AutoZone (NYSE: NYSE:AZO ), like many other corporations, is expected to integrate technology to streamline its operations. Although companies like Nvidia and AMD are reaping the rewards of AI’s rise, AutoZone’s use of generative AI to optimize its business could be a game-changer in the near future.
Technical Analysis:
On the technical front, AutoZone’s stock performance is also showing positive signs. As of this morning’s premarket trading, NYSE:AZO is up 0.98%, positioning the stock for a potential upward breakout. The daily price chart shows a bullish symmetrical triangle pattern, which is often considered a continuation pattern in technical analysis. This suggests that a positive earnings beat could propel the stock higher, confirming the bullish formation.
Adding to the bullish sentiment, AutoZone’s Relative Strength Index (RSI) currently stands at 41.67. While not in overbought territory, this level signals room for growth as the stock attempts to recover from its recent dip. Given the RSI’s position and the formation of the symmetrical triangle, many technical analysts believe that the stock could see further gains, particularly if today’s earnings report meets or exceeds expectations.
Price Targets and Market Sentiment
AutoZone (NYSE: NYSE:AZO ) is currently trading around $3,048, with an average analyst price target of $3,229. If the company manages to surpass analysts’ expectations with a solid earnings beat, the stock could see a resurgence toward this target and beyond. Analysts are projecting quarterly earnings of $53.69 per share, up from $46.46 in the same quarter last year. Revenue is expected to reach $6.23 billion, significantly higher than last year’s $5.69 billion.
Conclusion: A Crucial Moment for AutoZone
AutoZone’s Q3 earnings report will set the tone not only for the company but for the broader automotive retail sector. With the stock forming a bullish technical pattern and earnings expected to grow, AutoZone (NYSE: NYSE:AZO ) could be on the cusp of a positive turnaround. The combination of strong fundamentals—such as the company’s share repurchase program and increasing revenues—and technical indicators suggests that the stock has the potential to rally in the near future.
However, with the company missing revenue estimates in the past, investors remain cautious. A beat on earnings today could signal a turning point for the stock, propelling it toward new highs, while a miss may prolong the sideways trading seen over the past month. Either way, all eyes are on AutoZone (NYSE: NYSE:AZO ) as it reports earnings before the bell today.
AZO
AZO potential Buy setupReasons for bullish bias:
- Price bounce from channel support
- Weekly hammer candle at support
- Price bounced from horizontal support
- No divergence
- Positive Earnings
Here are the recommended trading levels:
Entry Level(CMP): 2817.00
Stop Loss Level: 2702.50
Take Profit Level 1: 2985.48
Take Profit Level 2: 3177.38
Take Profit Level 3: Open
AAP Autoparts Retailer Retraces and Reverses down SHORTAAP on a 240 minute chart has completed a Fibonacci retracement of the previous trend down
which covered April to October 2023. Support was retested for a month or so. The retracement
starting in December is now to the standard level and price is being rejected there. The faster
RSI topped out at 65 while the slower RSI line ( black ) never got over 50. As an aside,
AAP is weak compared with AZO, its peer and leader in the market sector. I am looking for
stocks to short to get synergy from and general market downturns. I have found one. This short
trade is supported by the predictive algorithm of LuxAlgp.
AZO AutoZone Options Ahead of EarningsAnalyzing the options chain and the chart patterns of AZO AutoZone prior to the earnings report this week,
I would consider purchasing the 2500usd strike price Puts with
an expiration date of 2023-10-20,
for a premium of approximately $60.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Why has Autozone Risen So Much?The stock market keep falling yesterday yet there is still some companies who saw gains. Autozone (AZO) is one of those companies.
Azo is my stock pick for today. I am simple playing vanilla breakout strategy here.
Buy above yesterdays close and if market does not gap down.
Stopout: 2015.40
Target: 2450
Autozone Post EarningsNYSE:AZO triggered a spike alert this morning on earnings announcement. Price action is at a support and worth a buy to play back to the top of the range and beyond.
As an aside, used car prices have increased dramatically in the last few months due to the shortage of new car inventory coming to market. Some of this is due to material costs and companies like Ford NYSE:F have been reported to be having backlog due to computer chip shortages. These market forces are compounded by inflation.
Get in the Zone: the Lotto ZoneIf any of you are up for a gamble, this is a good play for a short position / long puts. AZO has had a monster rally and is starting to wind back to some pre-pandemic support levels I believe. Now this is a good company, but the stock will get caught up in a mess of short-term declines in the Retail Trade sector and this one has far to fall and a well-defined area of support to work off of.
Some solid indicators are saying this is well over-bought and flashing the sell signal. This means we may have reached the peak of it's new consolidation area and will begin grinding down to find the bottom. Thankfully we have a triple-top to tell us where that bottom will ultimately be. Options are expensive for shares this pricey, and bid-ask spread is huge, so maybe just an old-fashioned short is your ticket.
Market getting toppy? Lots of bearish signalsI primarily use TDAmeritrade's thinkorswim platform to trade and I am starting to notice that their intraday data integrity is far better than Tradingview. I use thinkorswim to generate my morning alerts for "spikes" and the bars in the platform are very different from TV. Regardless, the number of alerts this morning gives me a hint that the market is getting a bit toppy today. I had 2 Limit order profits hit and closed 2 other bullish trades manually. I went short AZO and ALL on signals. Here is this morning's list for posterity. This many data points should yield some statistics on the signal.
AGN
ALL
AMGN
ANTM
AZO
BDX
BMY
BR
CDNS
CPB
KMX
CME
CMCSA
GLW
DHR
DRI
XRAY
ETR
FE
FCX
AJG
JKHY
HLT
INTU
IQV
LVS
LYV
MKTX
MMC
MDLZ
MCO
MOS
MSCI
NDAQ
PFE
PPG
PGR
DGX
ROST
CRM
SRE
NOW
STE
SYK
TMO
TRV
VRSK
DIS
XRX
ZBH
AZO Credit SpreadSince IV is extremely high on AZO I put a credit spread on 1.52 credit collected
1270/1280
0.11/0.09 EXP Jan 17
Looks good I just wanna collect $75 out of this 50% of the spread credit. Low risk trade + earnings makes it somewhat more risky.
Max loss will be $200 if it turns against me somehow blasts off to the moon.
Time To Change The OilAZO Has the appearance of having completed its leg up, and still has room to move downward toward 888 area in my opinion. Below are multiple timeframe looks at possibilities of this look like. Weekly chart would appear to be presenting AZO in a possible first wave in a longer term view. On the daily, printed a big fat huge bearish engulfing candle last Friday. Sww attached image. Pretty self explanatory after that. Happy hunting and GLTA!! commodity.com
AZO approaching suport, potential bounce! AZO is approaching our first support at 795.92 (horizontal overlap support, 100% Fibonacci extension, 23.6% Fibonacci retracement) where a strong bounce might occur above this level pushing price up to our major resistance at 893.64 (horizontal swing high resistance).
Stochastic (34,5,3) is also approaching support where we might see a corresponding bounce in price.
Overbought Threshold Rejects A Stock Market With Crossed SignalsThe headlines are headwinds, then tailwinds, then headwinds all over again. The stock market ominously pulled back from overbought again.
"An Overbought Threshold Rejects A Stock Market With Crossed Signals" drduru.com $SPY $QQQ $IWM #AT40 #T2108 #VIX $BA $TOL $BBY $AZO $MNRO $ULTA $AUDJPY #forex