AutoZone Beats Q4 EPS Estimates but Misses Revenue Forecasts
AutoZone reported adjusted earnings of $56.05 per share, exceeding expectations, while revenue came in slightly below consensus. The stock trails the S&P 500.
Key points
- AutoZone posted adjusted EPS of $56.05, beating the $54.54 consensus estimate by 2.77%.
- Quarterly revenue reached $6.59 billion, missing the consensus estimate by 1.38%.
- Shares have dropped 17.4% year-to-date, underperforming the S&P 500's 13.4% gain.
AutoZone reported adjusted earnings of $56.05 per share for the quarter ending August 2026, surpassing the consensus estimate of $54.54. This result marks a 15% year-over-year increase from $48.71 per share in the same period last year, demonstrating continued growth in profitability despite a mixed top-line performance.
Despite the earnings beat, the retailer recorded revenues of $6.59 billion, which fell short of the consensus estimate by 1.38%. Revenue rose 5.6% from $6.24 billion in the prior year, but the company has failed to exceed revenue expectations in any of the last four quarters, signaling potential pressure on sales volume or pricing.
Earnings Outperformance Contrasts With Revenue Shortfall
The positive earnings surprise of 2.77% followed a similar trend in the previous quarter, where AutoZone delivered a 5.22% beat. Over the trailing four quarters, the company has exceeded consensus EPS estimates three times. This pattern indicates that cost management or margin expansion is currently driving bottom-line results more effectively than top-line sales growth.
Stock Lags Broader Market Performance
AutoZone shares have declined 17.4% since the start of the year, a stark contrast to the S&P 500’s gain of 13.4% over the same period. As reported by yahoo.com, this underperformance persists despite the company’s ability to consistently beat earnings expectations. The divergence suggests investors are weighing the revenue miss and broader market conditions heavily against the profit results.
Forward Estimates and Analyst Consensus
For the upcoming quarter, the consensus expects earnings of $38.05 per share on revenues of $4.98 billion. For the current fiscal year, analysts forecast EPS of $175.04 and total revenues of $21.98 billion. The current Zacks Rank is #3 (Hold), reflecting mixed estimate revisions. Future stock movement will likely depend on how management guides these forward figures and whether revenue estimates are revised upward following the earnings call.
