Two large-cap stocks released financial results before the opening bell on Tuesday.
Shares of AutoZone Inc. (NYSE:AZO) declined 0.64% to $1,140 in pre-market trading on Tuesday despite beating consensus estimates on GAAP earnings for the last quarter of fiscal 2019 by 70 cents. The company recorded $22.59 per share. The result reflected 50.4% growth from the year-ago quarter.
Revenue increased 12.1% year-over-year to $3.99 billion, topping expectations by $60 million.
The Memphis-based retailer and distributor of automotive replacement parts and accessories also posted a decline in gross profit margins by 20 basis points to 53.4% of total sales due to lower merchandise margins.
Moreover, net income grew 41.2% to $565.2 million and operating profit expanded 32.1% to $780.8 million.
In the quarter, AutoZone invested $692 million for the repurchase of 634,000 shares of its common stock at an average price of $1,091 per share. AutoZone operated 6,411 stores, which was 209 stores more than the last quarter of fiscal 2018 and 124 stores more than the third quarter of fiscal 2019.
Also, the balance sheet had $176.3 million in cash on hand and $5.21 billion in debt as of Aug. 31.
The stock closed at $1,147.26 per share on Monday following a 48% rise in the past year. The company had a market capitalization of $28.14 billion at close on Monday. The share price is above the 200, 100 and 50-day simple moving average lines.
The 52-week range is $705.01 to $1,186.60. The company is not paying a dividend.
Wall Street recommends an overweight rating for shares of AutoZone Inc. with an average target price of $1,204.
Shares of IHS Markit Ltd. (INFO, Financial) were 0.63% lower at $66.50 in premarket trading on Tuesday after missing expectations on GAAP earnings for the third quarter of fiscal 2019 by 25 cents. The company posted 10 cents per diluted share, which was 62% lower compared to the year-ago quarter, on $1.11 billion in revenue, up 11% year-over-year.
Revenue fell $10 million short of expectations.
By transaction type, the company reported an 11% increase in recurring fixed revenue to $799.9 million, a 16% rise in recurring variable revenue to $144.4 million and a 6% jump in non-recurring revenue to $168 million.
The London-based critical information and analytics provider also said that adjusted Ebitda grew 16% to $452.9 million, operating cash flow advanced 19% to $412.9 million and free cash flow rose 17% to $342.9 million.
For full fiscal year 2019, IHS Markit Ltd. forecasts that adjusted earnings per diluted share should approach the higher limit of the previous guidance range of $2.52 to $2.57 versus estimates of $2.57. The company projects revenue of $4.4 billion to $4.42 billion versus estimates of $4.44 billion.
Further, the balance sheet had $124.1 million in cash on hand and equivalents and $5.05 billion in debt as of Aug. 31. Total equity was approximately $8.24 billion.
The share price was $66.92 at close on Monday for a market capitalization of $26.84 billion. The stock increased 24% in the past year through Sept. 23 and is now above the 200-, 100- and 50-day simple moving average lines.
The 52-week range is $44.52 to $68.88. The company is not paying a dividend.
Wall Street issued an overweight recommendation rating for shares of IHS Markit Ltd with an average target price of $68.13.
Disclosure: I have no positions in any securities mentioned.
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