AutoZone (NYSE:AZO – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $56.05 EPS for the quarter, beating the consensus estimate of $0.54 by $55.51, Zacks reports. The company had revenue of $6.59 billion for the quarter, compared to analyst estimates of $6.70 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. AutoZone’s revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business earned $48.71 earnings per share.
Here are the key takeaways from AutoZone’s conference call:
- Commercial sales remained a major growth engine: Domestic commercial sales rose nearly 9% in Q4 and nearly 11% for FY2026, supported by Mega Hub expansion, improved inventory availability, faster delivery, and market-share gains.
- AutoZone plans to open approximately 400 stores in FY2027, including more than 40 Mega Hubs, while new-store performance is running ahead of initial forecasts. Management expects new stores to reach roughly 15% ROIC by year four and more than 20% by year six.
- DIY demand was weak: Domestic DIY same-store sales declined 0.6% in Q4 as traffic fell, customers deferred maintenance or traded down, and inflation pressured lower-income consumers. Management expects Q1 domestic same-store sales to be roughly flat.
- Management expects FY2027 domestic same-store sales to be flat to up low single digits, commercial sales to grow at a high-single- to low-double-digit rate, and international comps to improve to low- to mid-single-digit growth as Mexico recovers.
- Q4 results benefited from a $96 million tariff refund and lower LIFO charges, which lifted reported EPS; however, the company expects FY2027 gross-margin growth to be only flat to up 25 basis points and plans approximately $1.65 billion of capital expenditures.
AutoZone Stock Performance
AZO opened at $2,891.00 on Wednesday. The company has a market cap of $47.21 billion, a PE ratio of 19.88, a price-to-earnings-growth ratio of 1.41 and a beta of 0.34. The stock has a 50-day moving average of $2,986.72 and a 200-day moving average of $3,205.00. AutoZone has a 52-week low of $2,796.85 and a 52-week high of $4,332.68.
Wall Street Analyst Weigh In
Check Out Our Latest Stock Report on AutoZone
AutoZone announced that its Board of Directors has authorized a share repurchase program on Tuesday, June 16th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the company to buy up to 3% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.
Key AutoZone News
Here are the key news stories impacting AutoZone this week:
- Positive Sentiment: Profit significantly exceeded expectations: AutoZone reported fiscal fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above analyst estimates of roughly $54.50. Net income rose to $931.6 million, while operating profit increased 10.1% to approximately $1.3 billion. AutoZone fourth-quarter results
- Positive Sentiment: Expansion and market-share gains support the outlook: Quarterly sales increased 5.6% to $6.59 billion, AutoZone opened 175 stores, and management said it is well positioned for fiscal 2027 sales growth. International same-store sales were particularly strong, and analysts highlighted the company’s expanding global store network as a source of future growth. Why AutoZone stock rallied
- Positive Sentiment: Margin gains and capital returns helped investor sentiment: Gross margin improved to 53.3%, aided by tariff refunds and a favorable LIFO comparison. AutoZone also repurchased about $697.5 million of stock during the quarter, supporting per-share earnings.
- Neutral Sentiment: Revenue and comparable-store growth were mixed: Quarterly revenue fell short of forecasts, while domestic same-store sales rose only 1.6% on a constant-currency basis. The earnings beat therefore depended partly on margin benefits that may not recur.
- Negative Sentiment: Analyst downgrade remains an overhang: AutoZone reached a new 12-month low following an analyst downgrade before the earnings-driven rebound, reflecting concerns about slowing comparable sales and the sustainability of recent earnings growth. AutoZone reaches new 12-month low
Insiders Place Their Bets
In other news, VP Dennis LeRiche sold 1,455 shares of the business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total value of $4,510,500.00. Following the completion of the sale, the vice president directly owned 441 shares in the company, valued at approximately $1,367,100. The trade was a 76.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 2.60% of the company’s stock.
About AutoZone
AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.
Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.
Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.
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