AutoZone stock on pace for worst trading day since March 2020
An AutoZone store in Richmond, California, February 26, 2026.
David Paul Morris | Bloomberg | Getty Images
AutoZone Inc. Despite beating Wall Street estimates for the retailer’s third-quarter financial results, the stock was on track for its worst trading day in more than six years on Tuesday.
AutoZone shares fell more than 10% in intraday trading on Tuesday, accelerating the first double-digit daily sales decline since the start of the Covid pandemic in March 2020.
The company reported earnings per share of $38.07 in the latest fiscal quarter, compared to expected earnings of $36.28 per share, according to average estimates compiled by LSEG. Its revenue of $4.84 billion was also in line with LSEG’s estimates of $4.83 billion. The company’s fiscal quarter ended May 9.
Analysts say the company quarterly call On Tuesday, there were concerns about weak growth internationally and margin compression more in line with rivals. They also questioned the slowdown in annual sales due to cold weather compared to declines in consumer spending.
“This slowdown in sales was due to unseasonably cold weather conditions affecting our heat-related categories, which normally take off this time of year as the summer heat takes hold,” AutoZone CEO Philip Daniele said in a statement Tuesday. he said.
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Wall Street analysts questioned executives Tuesday about ongoing pressures on business due to inflation, energy costs and possible supply chain disruptions caused by the war in Iran, particularly possible motor oil shortages.
AutoZone executives said they expect inflationary pressures to continue but have “eased somewhat” due to year-over-year comparisons. They were also little concerned about potential problems with the supply of lubricants such as engine oil, which were reportedly affecting dealer operations. Toyota Motor and Nissan Motor.
“The problem with lubricants, I know there’s a lot of noise out there. We’ll leave it to the oil experts to say what that means. We think there will probably be some restrictions, but we don’t think it will be that much stuff,” Daniele said.
automotive website Driver reported both Nissan and Toyota recently issued service bulletins to dealers with instructions on rationing motor oil stocks due to the impending shortage.
A Toyota spokesman said the company “has nothing further to add on this matter at this time.” A spokesperson for Nissan said the automaker was “working through supplier restrictions that impact lubricant availability.”
“We are currently maintaining current pricing and implementing temporary allocation measures to help ensure consistent supply across our dealer network. We are also working with supplier partners to source additional resources. Our priority continues to support our dealers to provide an exceptional customer experience,” he said in an emailed statement.
