AutoZone, Inc. reported strong EPS but missed on revenue and experienced gross margin contraction, prompting a cautious Hold rating despite the recent price drop. AZO benefits from the aging U.S. vehicle fleet and ongoing store expansion but faces weak DIY traffic and inflation-driven margin pressures. Commercial sales growth is robust, yet this segment carries lower margins, contributing to recent profitability headwinds and a mixed outlook.
Shares of AutoZone are on track for their worst trading day in more than six years. That's despite the retailer reporting earnings per share of $38.07 for its latest fiscal quarter that ended May 9, beating the $36.28 expected by average estimates compiled by LSEG.
AutoZone NYSE: AZO is a buy-and-hold quality stock nearly beyond compare. The company's management, strategy, market position, market trends, operational quality, cash flow, and capital returns are a recipe for ever-growing value, as reflected in the long-term price action.
AutoZone, Inc. (AZO) Q3 2026 Earnings Call Transcript
AutoZone, Inc. remains a long-term compounder despite recent margin pressure, slower EPS growth, and a pullback to $3,000. AZO's Q3 saw record sales of $4.84 billion (+8.5% YoY), positive comps, and EPS of $38.07, but gross margin fell 57 bps to 52.2%. Buybacks remain a key value driver, with 164,000 shares repurchased this quarter and only 16.4 million shares outstanding.
AutoZone NYSE: AZO reported stronger fiscal third-quarter sales growth as management pointed to gains in its commercial business, new store openings and expanded parts availability, while noting that mild late-quarter weather weighed on demand in some seasonal categories.
Autozone Inc (NYSE:AZO) reported fiscal third quarter earnings that topped Wall Street expectations, but revenue came in slightly below forecasts, sending the company's shares down more than 10% in early trade on Tuesday. The auto parts retailer posted adjusted earnings per share of $38.07 for the quarter ended May 9, ahead of the consensus estimate of $36.22.
Although the revenue and EPS for AutoZone (AZO) give a sense of how its business performed in the quarter ended May 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
AutoZone reported higher fiscal third-quarter sales boosted primarily by growth in the company's domestic business.
Wall Street is rediscovering the stock-split playbook. KLA (NASDAQ: KLAC | KLAC Price Prediction) announced a 10-for-1 forward stock split in May 2026 alongside a fiscal Q3 earnings beat and a roughly 21% dividend hike, with shares trading near the $1,800 range.
AutoZone (AZO) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
AutoZone (AZO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.