AutoZone before figures: Tension among investors on whether expectations will be exceeded

AutoZone, the well-known retailer for auto parts and accessories, is on the verge of releasing its latest quarterly figures. In the past period, the company exceeded analysts' revenue forecasts by 1.1% and achieved revenues of $4.46 billion, representing a 5.4% increase compared to the previous year. However, AutoZone slightly missed analysts' estimates in EBITDA and gross margin, indicating an overall calmer growth period. Analysts are divided on whether AutoZone is a buy or sell with the upcoming results. For the forthcoming quarter, AutoZone's revenue is expected to stagnate year-over-year and reach $6.24 billion, which represents a slowdown compared to last year's 9% growth. Additionally, the adjusted earnings per share are estimated at $50.78. Interestingly, the majority of analysts have confirmed their estimates in the last 30 days, indicating that they do not expect major surprises in the results. Particularly intriguing is that AutoZone will be the first among its competitors to release quarterly figures this season. This complicates forecasting for the overall market of automotive and marine parts retailers. Nevertheless, investors have remained calm so far: AutoZone's stock price has remained stable for a month and currently stands at $4,144. Until the results, the average target price of analysts is $4,449. In conclusion, the question remains whether AutoZone will undertake measures such as share buybacks to deal with excess capital. These could prove sensible, provided the price is right.