AutoZone (NYSE:AZO) Shares Up 5.8% After Better-Than-Expected Earnings

Key Points

• AutoZone shares rose 5.8% after fourth-quarter EPS came in at $56.05, beating the $53.65 consensus estimate and increasing from $48.71 a year earlier. Revenue grew 5.6% year over year, although approximately $6.59 billion fell short of analyst expectations.
• The company authorized a $1.5 billion share-repurchase program, allowing it to buy back up to 3% of outstanding shares, and had already repurchased about $697.5 million during the quarter.
• Investors also noted mixed signals: AutoZone opened 175 stores and expanded gross margin to 53.3%, but comparable-store sales growth was modest and margin gains benefited from tariff refunds and favorable accounting comparisons. Analysts maintain a generally positive view, with a “Moderate Buy” consensus despite several recent price-target reductions.

AutoZone, Inc. (NYSE:AZO - Get Free Report)'s share price traded up 5.8% on Tuesday following a better than expected earnings announcement. The company traded as high as $2,999.30 and last traded at $2,964.8040. 257,427 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 256,110 shares. The stock had previously closed at $2,803.25.

The company reported $56.05 EPS for the quarter, beating the consensus estimate of $53.65 by $2.40. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. During the same period in the prior year, the company earned $48.71 earnings per share. The business's quarterly revenue was up 5.6% on a year-over-year basis.

AutoZone announced that its Board of Directors has initiated a share buyback program on Tuesday, June 16th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the company to purchase up to 3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its stock is undervalued.

Key Stories Impacting AutoZone

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above consensus estimates near $53.65–$54.54. Net sales rose 5.6% year over year to approximately $6.6 billion, while operating profit increased 10.1% to $1.3 billion. AutoZone Tops Q4 Earnings Estimates
• Positive Sentiment: Gross margin expanded to 53.3%, supported partly by tariff refunds and a favorable non-cash LIFO comparison. Investors also responded positively to management’s view that sales improved during the back half of the quarter and could accelerate in fiscal 2027. AutoZone Jumps After Q4 Earnings
• Positive Sentiment: AutoZone continued expanding its store base, opening 175 locations during the quarter to finish fiscal 2026 with 8,031 stores. It also repurchased approximately $697.5 million of stock, providing additional shareholder support. AutoZone Q4 Sales and EPS Report
• Neutral Sentiment: Same-store sales increased 2.7% on a reported basis, or 1.5% excluding currency effects; domestic comparable sales rose 1.6%. International comparable sales were stronger at 10.7%, but the overall figures were viewed as modest and did not fully satisfy market expectations. AutoZone Fourth-Quarter Results
• Negative Sentiment: Fourth-quarter revenue of about $6.59 billion fell short of the roughly $6.71 billion FactSet estimate. Analysts also questioned the quality and sustainability of the margin improvement because tariff refunds and favorable accounting comparisons contributed meaningfully to the earnings beat. AutoZone Revenue Miss and EPS Beat

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Mizuho cut their target price on AutoZone from $3,600.00 to $3,200.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 27th. Oppenheimer decreased their price target on AutoZone from $4,300.00 to $3,500.00 and set an "outperform" rating for the company in a research report on Friday. Citigroup dropped their price target on AutoZone from $3,700.00 to $3,450.00 and set a "buy" rating on the stock in a report on Monday, September 14th. Robert W. Baird cut their price objective on AutoZone from $3,900.00 to $3,600.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 27th. Finally, Morgan Stanley reduced their price objective on AutoZone from $4,020.00 to $3,605.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, AutoZone presently has an average rating of "Moderate Buy" and an average target price of $3,887.58.

Insiders Place Their Bets

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the firm's stock in a transaction on Friday, August 7th. The stock was 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 of the company's stock, valued at $1,367,100. This trade represents a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Edmond DE Rothschild Holding S.A. purchased a new position in shares of AutoZone in the second quarter worth about $29,000. MCF Advisors LLC boosted its holdings in AutoZone by 50.0% in the 4th quarter. MCF Advisors LLC now owns 9 shares of the company's stock worth $31,000 after buying an additional 3 shares during the period. Bard Associates Inc. bought a new position in AutoZone in the 4th quarter worth approximately $31,000. Tacita Capital Inc bought a new position in AutoZone in the 2nd quarter worth approximately $32,000. Finally, Asset Dedication LLC grew its stake in AutoZone by 150.0% in the 1st quarter. Asset Dedication LLC now owns 10 shares of the company's stock valued at $34,000 after buying an additional 6 shares in the last quarter. Institutional investors own 92.74% of the company's stock.

AutoZone Stock Performance

The business's 50 day moving average is $2,989.44 and its two-hundred day moving average is $3,210.78. The firm has a market capitalization of $48.42 billion, a PE ratio of 20.38, a price-to-earnings-growth ratio of 1.43 and a beta of 0.34.

AutoZone Company Profile

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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