AutoZone (NYSE:AZO) Trading Up 5.8% After Strong Earnings

Shares of AutoZone, Inc. (NYSE:AZO) traded up 5.8% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $2,999.30 and last traded at $2,964.8040. 257,427 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 256,110 shares. The stock had previously closed at $2,803.25.

The company reported $56.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $53.65 by $2.40. AutoZone had a negative return on equity of 80.35% and a net margin of 12.40%.During the same quarter last year, the business posted $48.71 EPS. The business’s quarterly revenue was up 5.6% on a year-over-year basis.

AutoZone declared that its Board of Directors has approved a stock repurchase program on Tuesday, June 16th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the company to buy up to 3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Key AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fourth-quarter diluted EPS of $56.05, up from $48.71 a year earlier and above consensus estimates near $53.65–$54.54. Net sales rose 5.6% year over year to approximately $6.6 billion, while operating profit increased 10.1% to $1.3 billion. AutoZone Tops Q4 Earnings Estimates
• Positive Sentiment: Gross margin expanded to 53.3%, supported partly by tariff refunds and a favorable non-cash LIFO comparison. Investors also responded positively to management’s view that sales improved during the back half of the quarter and could accelerate in fiscal 2027. AutoZone Jumps After Q4 Earnings
• Positive Sentiment: AutoZone continued expanding its store base, opening 175 locations during the quarter to finish fiscal 2026 with 8,031 stores. It also repurchased approximately $697.5 million of stock, providing additional shareholder support. AutoZone Q4 Sales and EPS Report
• Neutral Sentiment: Same-store sales increased 2.7% on a reported basis, or 1.5% excluding currency effects; domestic comparable sales rose 1.6%. International comparable sales were stronger at 10.7%, but the overall figures were viewed as modest and did not fully satisfy market expectations. AutoZone Fourth-Quarter Results
• Negative Sentiment: Fourth-quarter revenue of about $6.59 billion fell short of the roughly $6.71 billion FactSet estimate. Analysts also questioned the quality and sustainability of the margin improvement because tariff refunds and favorable accounting comparisons contributed meaningfully to the earnings beat. AutoZone Revenue Miss and EPS Beat

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AZO shares. Guggenheim lowered their price target on shares of AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Robert W. Baird decreased their target price on shares of AutoZone from $3,900.00 to $3,600.00 and set a “neutral” rating on the stock in a report on Wednesday, May 27th. Oppenheimer lowered their target price on shares of AutoZone from $4,300.00 to $3,500.00 and set an “outperform” rating on the stock in a research note on Friday. TD Cowen cut their price target on shares of AutoZone from $3,700.00 to $3,500.00 and set a “buy” rating for the company in a report on Monday, August 31st. Finally, DA Davidson reduced their price target on shares of AutoZone from $4,300.00 to $3,750.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $3,887.58.

Insider Buying and Selling

In other AutoZone news, VP Dennis LeRiche sold 1,455 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $3,100.00, for a total transaction of $4,510,500.00. Following the sale, the vice president owned 441 shares in the company, valued at $1,367,100. This trade represents a 76.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AutoZone

A number of large investors have recently modified their holdings of AZO. BlackRock Inc. purchased a new stake in shares of AutoZone during the second quarter worth about $3,938,566,000. Norges Bank purchased a new position in AutoZone during the 4th quarter valued at about $939,205,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in AutoZone during the 2nd quarter valued at about $572,885,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in AutoZone by 11,577.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 141,066 shares of the company’s stock valued at $450,838,000 after purchasing an additional 139,858 shares during the last quarter. Finally, Corient Private Wealth LP purchased a new stake in AutoZone in the 2nd quarter worth approximately $38,604,000. 92.74% of the stock is owned by hedge funds and other institutional investors.

AutoZone Trading Up 5.8%

The firm has a market cap of $48.42 billion, a PE ratio of 20.38, a PEG ratio of 1.43 and a beta of 0.34. The firm has a fifty day simple moving average of $2,989.44 and a two-hundred day simple moving average of $3,210.78.

AutoZone Company Profile

AutoZone, Inc is a retailer and distributor of automotive replacement parts, accessories, and maintenance products. The company serves do-it-yourself customers, professional service technicians, and commercial repair businesses through its stores, distribution network, and online platform.

Its product offerings include replacement parts such as batteries, brakes, engine components, and ignition products, along with tools, fluids, filters, and other automotive accessories. AutoZone also provides services such as parts lookup, diagnostic assistance, battery testing and charging, and loaner tools for eligible repairs.

Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates primarily in the United States, with additional locations in Mexico and Brazil.