Categories AlphaGraphs, Earnings, LATEST

AutoZone stock dives after sales miss estimates

AutoZone Inc. (AZO) beat analysts’ expectations on earnings for the fourth quarter of 2018 but sales missed market consensus causing the stock to fall over 5% during premarket hours. The auto parts retailer reported a 1.3% increase in net sales to $3.56 billion for the fourth quarter of 2018 compared to the same period last year, as domestic same-store sales increased 2.2%.

Both the Retail and Commercial businesses saw positive same-store sales. Total domestic commercial sales increased 8.8% from last year.

Net income dropped 7.7% to $400.3 million while diluted EPS fell 1.6% to $15.02 versus the prior-year period. Adjusted net income increased 13.8% to $494 million, while adjusted diluted EPS grew 21.4% to $18.54, helped by lower income tax rates due to the tax reform.

AutoZone fourth quarter 2018 earnings
AutoZone Q4 2018 Earnings Infographic

Gross margins improved to 53.6% during the quarter from 52.8% last year, driven by the impact of the sale of two business units completed during the year and higher merchandise margins, partially offset by higher supply chain costs.

Inventory increased 1.6% over the prior-year period, driven by new stores and increased product placement, partially offset by the impact of the sale of two business units.

During the quarter, AutoZone opened 78 new stores and relocated four stores in the US, opened 28 new stores in Mexico and four in Brazil. As of August 25, 2018, the company had 5,618 stores in 50 states in the US, the District of Columbia and Puerto Rico, 564 stores in Mexico and 20 stores in Brazil for a total count of 6,202.

Related: AutoZone Q4 2018 Earnings Call Transcript

Earnings Preview: AutoZone is likely to surpass expectations

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top