economy
AutoZone stock has worst day in four years, despite retailer beating Wall Street estimates
Concerns include international growth and margin compression as well as pressures from inflation, energy costs and potential supply chain disruptions.
TL;DR
- AutoZone's stock closed down 9%, its worst performance in over four years.
- The company beat Wall Street's earnings per share and revenue estimates for its fiscal third quarter.
- Analysts expressed concerns about lackluster international growth and margin compression.
- CEO Philip Daniele cited unseasonably cool weather as the reason for slowing sales in heat-related categories.
- Executives addressed concerns about inflation, energy costs, and potential supply chain disruptions, specifically motor oil shortages.
- AutoZone executives are not overly concerned about lubricant supply issues impacting Toyota and Nissan.
- Nissan and Toyota have reportedly issued service bulletins regarding motor oil rationing due to impending shortages.