AZO - Will AutoZone beat FQ4 consensus after close competitor missed on reduced DIY demand?

AutoZone ( NYSE: AZO ) is scheduled to announce FQ4 earnings results on Monday, September 19th, before market open.

The consensus EPS estimate is $38.61 (+8.09% Y/Y) and consensus revenue estimate is $5.16B (+5.00% Y/Y).

Will the automotive retail company beat consensus after peer Advance Auto Parts ( AAP ) reported a miss in its Q2 earnings?

Advance Auto Parts' Q2 non-GAAP EPS of $3.74 misses by $0.01 and revenue of $2.67B (+0.8% Y/Y) misses by $80M.

The company has set guidance below expectations after seeing a decline in comparable store sales during the quarter primarily to a drop in DIY demand.

AutoZone closely competes with Advance Auto Parts, according to Morgan Stanley's equity analyst, Simeon Gutman. AZO was highlighted by Gutman as the premier player and preferred to AAP.

However, Bank of America Analyst Elizabeth Suzuki and team point to increased risk for AZO if DIY demand is dropping. For AAP, the DIY channel represents only about 40% of sales.

AZO shares have historically delivered better returns than AAP shares. Here is a look :

Over the last 1 year, AZO has beaten EPS estimates 100% of the time and revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 5 upward revisions and 5 downward revisions. Revenue estimates have seen 6 upward revisions and 3 downward revisions.

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