AutoZone Misses Q1 Estimates as Revenue and Profits Fall Short

Higher raw material costs, currency exchange challenges, and slower-than-expected sales growth weigh on AutoZone's performance.

• AutoZone reported Q1 revenue of $4.28 billion, a 2% year-over-year increase but slightly below analyst expectations of $4.31 billion.
• Net income fell to $564.9 million, a 5% decline compared to the same period last year, with EPS of $32.52 missing the $33.55 analyst projection.
• Domestic same-store sales rose by 0.3%, falling short of the 0.67% growth analysts had anticipated, while international same-store sales grew by 1%.
• Higher raw material prices and a strong U.S. dollar negatively impacted profitability, with CEO Phil Daniele noting ongoing challenges in discretionary spending trends.
• AutoZone shares dropped over 2% in premarket trading, despite analysts maintaining positive long-term outlooks with adjusted price targets for the stock.

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