AutoZone, Advance Auto Parts report earnings

Yahoo Finance Live anchors discuss quarterly earnings for AutoZone and Advance Auto Parts.

Video transcript

JARED BLIKRE: And we want to get to another trending ticker here. AutoZone posting a beat for the third quarter as same-store sales also topped estimates, and let's see what that stock is doing. It's up about 1.9%, so just short of 2%, but this is a do-it-yourself company.

I think this is in a different category than some of the other retailers we've looked at because people who are trying to save money are keeping their cars longer. And this is a story that Pras Subramanian is covering today. Not sure if he's going to be on our show. But people are keeping their cars for longer, 12 years, and that's a very long time. I don't know that I ever had a car for 12 years. That would take a lot of maintenance.

So their trends, I think, are differently-- are informed differently and have different implications for the market than something else. But you can see investors somewhat impressed with their results today.

JULIE HYMAN: Yeah, somewhat impressed. I mean, we're not seeing huge runaway gains here with the 2.6% increase that they had in their comp sales. Gross margin coming in bang in line with estimates for AutoZone at 51.9%. So that's something, I'm sure, that folks are watching. Inventory there also higher by almost 14%.

Advanced Auto Parts, by the way, also reported in the same space.

JARED BLIKRE: Yes.

JULIE HYMAN: And that company it looks like is adjusting its full-year forecast a little bit. That's after you see earnings per share coming in a little bit light. Revenue coming in a little bit light of estimates.

The company for the full year is leaving its net-sales forecast unchanged. For its earnings per share, it looks like it is bringing that up a little bit. But you see the shares here are under pressure here this morning on that miss.

And, you know, similar kind of pressures that we're seeing from all of these companies. They talk about headwinds, including the DIY sales boost, that they're lapping that. So when you talk about DIY, a lot of that did come during the pandemic, and so now things are slowing down a little bit from that level.

JARED BLIKRE: Yeah, and it may continue. I don't have a lot to add on that particular topic but definitely something to monitor going forward.

And just real quickly, people could be do-it-yourselfers today for different reasons than they were do-it-yourselfers a year ago, and so that could affect the product mix.

JULIE HYMAN: Yeah, most definitely, and keep watching those older cars. And we'll watch the inflation from that input as well, from the car input.