AutoZone Inc. reported fiscal third-quarter results that exceeded analyst expectations, yet its stock experienced its largest single-day decline in over four years, closing 9% lower on Tuesday.
Key Details
- Earnings per share: $38.07, vs. $36.28 expected (LSEG consensus)
- Revenue: $4.84 billion, in line with the $4.83 billion estimate
- Fiscal quarter ended: May 9
- Stock performance: Fell 9%, the worst single-day drop since a 9.5% decline on May 18, 2022
- After-hours trading: Shares continued declining
Analyst Concerns
Analysts questioned the company's lackluster international growth and raised issues about margin compression aligning with competitors. They also noted slowing year-over-year sales.
Company Explanation
CEO Philip Daniele attributed the sales slowdown to unseasonably cool weather, which reduced demand for heat-related categories that typically increase during early summer.