Benzinga | Dec 7, 2020 10:08AM EST

Earnings Outlook For AutoZone

AutoZone (NYSE:AZO) announces its next round of earnings this Tuesday, December 08. Here is Benzinga's everything-that-matters guide for this Tuesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict AutoZone will report earnings of $17.77 per share on revenue of $3.15 billion. In the same quarter last year, AutoZone reported earnings per share of $14.3 on sales of $2.79 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 24.27%. Revenue would be up 12.78% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019EPS Estimate 24.79 13.68 11.80 13.77EPS Actual 30.93 14.39 12.39 14.30Revenue Estimate 4.15 B 2.67 B 2.57 B 2.77 BRevenue Actual 4.55 B 2.78 B 2.51 B 2.79 B

Stock Performance

Shares of AutoZone were trading at $1161.83 as of December 04. Over the last 52-week period, shares are down 7.9%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AutoZone is scheduled to hold the call at 10:00:00 ET and can be accessed here.