AutoZone (ticker: AZO) surpassed Wall Street’s earnings and sales expectations for its fiscal fourth quarter. However, the company’s stock witnessed a decline due to lower-than-anticipated sales in its domestic commercial division.
Earnings and Sales Figures
AutoZone reported earnings of $46.46 per share for the fourth quarter, indicating growth compared to the previous year and surpassing the estimated $45.17 per share. Net sales for the automotive replacement parts manufacturer totaled $5.69 billion, also showing an increase from the same quarter last year and surpassing expectations of $5.61 billion.
Struggles in Domestic Commercial Sales
Despite overall positive performance, AutoZone experienced a setback in its domestic commercial division. Total domestic commercial sales reached $1.499 billion, falling short of analysts’ forecasted $1.55 billion.
While same-store sales in the quarter rose by 4.5%, it was lower than the 7.1% growth reported a year ago. Nonetheless, it exceeded analysts’ expectations of a 2.4% increase.
CEO Bill Rhodes acknowledged the slow start to the quarter but highlighted improvements in the latter half. Rhodes expressed confidence in the company’s initiatives, stating that they anticipate stronger growth for fiscal year 2024 despite the lower-than-expected growth in the domestic commercial segment.
AutoZone’s stock experienced a 2.2% decline during premarket trading, reaching $2,467. As of now, shares have witnessed a 2.3% increase since the beginning of the year.