Listen to this articleMultiple reliable news outlets have shared updates related to stocks in focus on Monday, September 19, in premarket trade. The reports said the stock of Amazon dropped 1% after reports from the Spanish press. The Spanish press reported that Amazon has stopped the establishment of new warehouses in Spain until 2024. The move came as online shopping has slowed down amid the pandemic.
However, the stock of AutoZone auto parts retailer boosted 2.7% after the company’s latest quarterly results motivated more investors. Keep in mind that its same-store sales reportedly increased 6.2% compared to a year ago. The stock of Take-Two Interactive declined 5.6% after a report from Bloomberg. The report said a hacker had released online the upcoming video game Grand Theft Auto IV.
The stock of Coinbase dropped 4.8% after the company experienced the multi-month lows of most of the cryptocurrencies. Moreover, the stock of Tesla also declined 1.1% after many key tech stocks were concerned about a massive Fed rise. The Shanghai officials said the EV manufacturer has finalized a project to enhance its Shanghai plant’s production capacity.
The Stock of Adobe and NCR Dropped
Meanwhile, the stock of Adobe dropped 1.4% due to Wells Fargo’s degraded investment attitude toward the software company. The move came to balance weight from being overweight. Keep in mind that the $20 billion purchase of Figma also raised many questions. The stock of Array Technologies increased 2.9% after Piper Sandler updated its view.
Piper Sandler said the solar-tracking technology has become overweight from neutral and the stock can reach around 60%. However, the stock of NCR declined 2.2% after Morgan Stanley degraded its attitude toward the ATMs maker and POS systems to balanced weight from overweight. It says investors want confirmation after the split announcement from the company.
The Same-Store Sales of AutoZone Performed Well
Moreover, AutoZone reported net sales of $5.3 billion for its 4th quarter ended August 27. The company reported an increase of 8.9% from the 4th quarter of fiscal 2021. The domestic same-store sales open at least one year and it added 6.2% for the 4th quarter. The Chairman, President, and CEO, Bill Rhodes issued a statement.
Rhodes said the results are an attestation to the ongoing commitment from AutoZone to deliver extraordinary service. The retail business of the company performed well in the 4th quarter with impressive same-store sales. The commercial business growth is continuously getting stronger at 22%. The company made an investment in the availability of both technology and inventory.
The Net Income of AutoZone for the 4th Quarter Increased
The gross profit as a percentage of sales for the 4th quarter was 51.5%. It was a decline of 73 basis points compared to last year. However, the accelerated growth in the company’s business declined the gross margin. There was also a 28-basis point non-cash LIFO charge due to rising freight costs. The percentage of sales for operating expenses was 30.9% compared to 31.0% last year.
Meanwhile, the operating profit of the company increased 5.7% to $1.1 billion. The net income of AutoZone for the 4th quarter increased 3.1% compared to last year’s $810.0 million. The earnings per share rose 13.4% to $40.51 compared to $35.72 in the 4th quarter of last year. The sales for the 4th fiscal quarter were recorded at $16.3 billion with an increase of 11.1% from the previous year.
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