AutoZone Tops Expectations But Continues To Struggle On The Home Front
Portfolio Pulse from Upwallstreet
AutoZone, Inc. (NYSE:AZO) reported fiscal fourth quarter earnings and sales that exceeded expectations due to soaring international demand and improved margins. However, domestic commercial growth was lower than expected, causing shares to drop. The company faces competition from Advance Auto Parts Inc (NYSE:AAP) and O'Reilly Automotive Inc (NASDAQ:ORLY). AutoZone's revenue for the quarter was $5.69 billion, a 6.4% YoY increase, and net income was $864.8 million or $46.46 per share, a 6.8% rise. However, domestic sales fell short of expectations, increasing only 3.9% to $1.49 billion. The company's new CEO, Bill Hackney, is expected to address the disappointing U.S. growth and expand the commercial business.

September 20, 2023 | 4:22 pm
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NEGATIVE IMPACT
AutoZone's Q4 earnings beat expectations but shares dropped due to lower than expected domestic growth.
Despite beating earnings expectations, AutoZone's shares dropped due to lower than expected domestic growth. This indicates that the market was expecting better performance in the domestic market.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Advance Auto Parts is a competitor of AutoZone, which is struggling with domestic growth.
Advance Auto Parts is mentioned as a competitor of AutoZone. The news does not provide specific information about AAP, so the impact is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
O'Reilly Automotive is a competitor of AutoZone, which is struggling with domestic growth.
O'Reilly Automotive is mentioned as a competitor of AutoZone. The news does not provide specific information about ORLY, so the impact is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50