AutoZone (NYSE:AZO) Announces Quarterly Earnings Results, Beats Estimates By $55.51 EPS

AutoZone (NYSE:AZO) issued its earnings results on Tuesday. The company reported $56.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.54 by $55.51, Zacks reports. The business had revenue of $6.59 billion during the quarter, compared to analysts’ expectations of $6.70 billion. AutoZone had a negative return on equity of 90.08% and a net margin of 12.65%.AutoZone’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $48.71 EPS.

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 Down 1.6%

AZO opened at $2,848.16 on Thursday. The stock has a market cap of $46.50 billion, a PE ratio of 18.64, a price-to-earnings-growth ratio of 1.45 and a beta of 0.34. AutoZone has a twelve month low of $2,764.88 and a twelve month high of $4,332.68. The company has a fifty day moving average of $2,984.27 and a 200-day moving average of $3,198.67.

Insider Transactions at AutoZone

In related news, VP Dennis LeRiche sold 1,455 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the transaction, the vice president directly owned 441 shares of the company’s stock, valued at $1,367,100. This represents a 76.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 2.60% of the company’s stock.

AutoZone News Summary

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: Profit beat and margin expansion: Fiscal fourth-quarter diluted EPS reached $56.05, up from $48.71 a year earlier and above consensus estimates. Gross margin expanded to 53.3%, while operating profit rose 10.1% to approximately $1.3 billion. Tariff refunds and a favorable non-cash LIFO comparison provided meaningful support. AutoZone Q4 Earnings Beat Estimates on Tariff Refunds, Sales Miss
• Positive Sentiment: Growth initiatives remain intact: Sales rose 5.6% year over year to $6.59 billion, the company opened 175 stores during the quarter, and fiscal 2026 ended with 8,031 locations. Management said it expects sales growth to accelerate in fiscal 2027 and highlighted market-share gains, particularly in commercial and international operations. AutoZone, Inc. Q4 2026 Earnings Call Summary
• Positive Sentiment: Shareholder returns provided support: AutoZone repurchased about $697.5 million of stock during the quarter, helping boost per-share results and signaling management’s confidence in the business. Several analysts still maintain buy, outperform, or strong-buy ratings, with revised targets above the current share price.
• Neutral Sentiment: Analyst targets were lowered but remain constructive: Roth Capital, DA Davidson, BMO, Mizuho, Raymond James, and Baird reduced their targets following the results. However, most retained positive or neutral ratings, with targets ranging from $3,000 to $3,850. AutoZone Analysts Cut Their Forecasts After Q4 Results
• Negative Sentiment: Revenue and comparable-store trends disappointed: Quarterly revenue fell short of the roughly $6.7 billion consensus estimate. Same-store sales increased 2.7% reported, but only 1.5% on a constant-currency basis, while domestic comps rose 1.6%, indicating continued softness in the DIY business.
• Negative Sentiment: Some earnings growth was one-time or potentially temporary: Investors may question how much of the margin and EPS improvement can be sustained after tariff refunds and favorable accounting comparisons fade.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. TD Cowen dropped their price target on AutoZone from $3,500.00 to $3,400.00 and set a “buy” rating on the stock in a research report on Wednesday. Weiss Ratings cut shares of AutoZone from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, July 23rd. Oppenheimer set a $3,400.00 target price on AutoZone in a report on Wednesday. Robert W. Baird decreased their price objective on AutoZone from $3,600.00 to $3,400.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, Evercore reiterated an “outperform” rating on shares of AutoZone in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $3,724.58.

AutoZone announced that its Board of Directors has approved a stock buyback plan on Tuesday, June 16th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

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.