The company reported net sales of $4.2 billion for the first quarter of fiscal 2024 (for AZO not coinciding with calendar quarter), posting an increase of 5.1% from the same period of fiscal 2023. Total company same-store sales, or sales at domestic and international stores open at least one year, rose 3.4%. Q1 net income came in at $593.5 million or $32.55 per share, compared to $539.3 million or $27.45 per share in the corresponding period of last year.

AutoZone (AZO) Q1 FY2024 Highlights:

● Revenue: $4.19 billion vs. consensus estimate of $4.19 billion (small miss)

● EPS: $32.55 vs. consensus estimates of $31.61 (3% above expectations)

● Free Cash Flow of $594.8 million, down 12.4% from the same quarter last year

● Gross Margin (GAAP): 52.8%, up from 50.1% in the same quarter last year (surpassing forecast)

● Same-Store Sales were up 3.4% YoY (Domestic same-store sales of 1.2% YoY missed)

● Store Locations: 7,165 at quarter end, increasing by 187 over the last 12 months

With gross margin in excess of 50% and P/E of around 20X, EV/EBITDA to the tune of 15X, Autozone is definitely an interesting alternative narrative to one dominating tech names investors assume their best investment options currently.