AutoZone's second-quarter profit beat estimates amid DIY trend

OReilly Automotive

27/02/2024 12:37

Feb 27 (Reuters) - Automotive parts retailer AutoZone  AZO.N  reported a
better-than-expected quarterly profit on Tuesday, helped by a
Do-It-Yourself(DIY) trend among customers wanting to keep their older cars on
the road.
    Demand for auto parts stayed resilient during the quarter as surging prices
of new and used vehicles discouraged some buyers from buying new ones.
    The Memphis, Tennessee-based company has also benefited from some motorists
staying away from modern, tech-heavy cars in favor of older model vehicles.
    "While a difficult holiday comparison for both Christmas and New Year's
negatively impacted quarterly sales performance, we continue to be encouraged
with our sales initiatives and believe we are well positioned for future
growth," AutoZone's CEO Phil Daniele said. 
    Its overall second-quarter revenue rose 4.6% to $3.86 billion compared to
analysts' average estimate of $3.84 billion, according to LSEG data.
    Excluding items, AutoZone earned $28.89 per share, compared to $24.64 a year
earlier, also beating LSEG estimates of $26.28 per share. 
    Two weeks back, rival parts supplier O'Reilly Automotive ORLY.O  also
reported quarterly earnings ahead of Street estimates.
    
    

 (Reporting by Pratyush Thakur and Nathan Gomes in Bengaluru)
 ((Nathan.Gomes@thomsonreuters.com))