AutoZone Q3 EPS of $38.07 Beats Estimates, $4.84B Sales Fall Short
AZO•AutoZone posted adjusted Q3 EPS of $38.07, beating consensus by $1.85, while revenue of $4.84 billion fell short of estimates by $20 million despite an 8.4% year-over-year increase. Gross margin dipped 57 basis points to 52.2% and the company opened 82 new stores, bringing its total to 7,856.
1. Q3 Earnings Beat Estimates
AutoZone delivered adjusted EPS of $38.07 for the quarter ended May 9, surpassing the $36.22 consensus by $1.85 and lifting net income to $641.5 million from $608.4 million a year ago. The earnings beat underpinned strong profitability despite mixed top-line results.
2. Revenue Growth and Shortfall
Total revenue rose 8.4% year-over-year to $4.84 billion but fell $20 million below analyst forecasts of $4.86 billion. Domestic same-store sales grew 4.1% while global same-store sales increased 3.9% on a constant currency basis.
3. Margin Pressures and Expense Management
Gross margin contracted by 57 basis points to 52.2%, driven primarily by a 77 basis point non-cash LIFO impact. Operating expenses improved to 33.1% of sales from 33.3% year-over-year, supporting an operating margin north of 19%.
4. Store Expansion
During the quarter AutoZone opened 82 new locations—57 in the U.S., 20 in Mexico and five in Brazil—raising its global store count to 7,856. This expansion aligns with the retailer’s strategy to drive long-term sales growth in key markets.
