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AutoZone Shares Slide After Q1 Miss on Revenue and EPS Estimates

Wall Street foresaw roughly flat profit with rising revenue, yet the company missed those targets.

Overview

  • Shares fell about 7% after the company reported fiscal Q1 results that came in below consensus on both revenue and earnings, according to Seeking Alpha.
  • The quarter delivered modest 2.4% sales growth alongside a 200 basis-point decline in gross margin and operating expenses rising to 34% of sales, Seeking Alpha reported.
  • Despite a slower repurchase pace, the retailer still has $1.7 billion authorized for share buybacks, per Seeking Alpha.
  • Ahead of the release, consensus called for $32.51 in EPS on $4.64 billion in revenue, as cited by Benzinga from Benzinga Pro.
  • Investors were already cautious into the print, with the stock down roughly 1.5% to $3,766.96 the prior session, and recent analyst moves included a Goldman Sachs upgrade to Buy on Dec. 5.