Street View: AutoZone set for bumpy ride on higher inventory expenses

Autozone

10/12/2025 15:24

** Auto parts retailer AutoZone AZO.N on Tuesday posted first-quarter profit and sales below Wall Street's estimates

     ** Shares fall nearly 2.6% to about $3,406.7

WEAK Q1 RESULTS AND TARIFF-RELATED COSTS

     ** Mizuho says higher operating costs at 10.4% and $98 mln of Last-In, First-Out (LIFO) inventory pressure drove margins down by ~270 bps and EPS decline of ~4%

     ** Roth MKM says tariff-driven costs pushed Q1 product prices above 5%, co expects inflation to rise through remaining FY26 quarters; reduces FY26 EPS expectations to $148.42 from $152.93

     ** UBS says heightened LIFO expenses from tariff-related inventory costs, drag expected to persist for several quarters

     ** Truist says slower Q1 international sales amid Mexico's tough macroenvironment, AZO opened 12 locations in Mexico and 2 in Brazil during the quarter; sees FY26/27 EPS $138.60/$157.65 from $138.90/$162.50

Brokerage
New PT
Old PT
Mizuho
$3,850
$4,050
Roth MKM
$4,650
$4,750
UBS
$4,325
$4,800
Truist
$4,076
$4,499
TD Cowen
$4,400
$4,900
Barclays
$4,318
$4,510
Wells Fargo
$4,500
$4,700
BMO
$4,400
$4,600
Jefferies
$4,400
$4,750

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))