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

Nike (NKE) swings to profit in Q4 on 96% revenue growth; results beat

Nike, Inc. (NYSE: NKE) reported a profit for the fourth quarter of 2021, compared to a loss last year, as revenues of the sneaker giant surged 96% aided by strong

FDX Earnings: All you need to know about FedEx’s Q4 2021 earnings results

FedEx Corporation (NYSE: FDX) reported fourth quarter 2021 earnings results today. Total revenues increased to $22.6 billion from $17.4 billion in the same period a year ago. The company reported

IPO News: Torrid Holdings is set to go public next week, here’s what to know

The retail industry undergoes various shifts from time to time as the needs and preferences of customers keep on changing. In today’s world, where concepts like female empowerment and body

Tags

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