AutoZone misses quarterly profit estimates on rising costs; shares down

OReilly Automotive

24/09/2024 14:33

Sept 24 (Reuters) - Auto parts retailer AutoZone  AZO.N 
reported a lower-than-expected fourth-quarter profit on Tuesday,
hurt by inflationary challenges, sending its shares down almost
5% in early trade.
    Despite an uptick in demand for DIY parts and other
components as more people sought to keep their aging vehicles on
the roads, the company has struggled with inflationary headwinds
and supply chain snarls amid a bumpy macro environment.
    Peers Advance Auto Parts  AAP.N  and O'Reilly Automotive
 ORLY.O  had also flagged some industry-wide demand challenges.
    "While the EPS miss was disappointing (AutoZone's first miss
since 2018), the company's top- and bottom-line growth is still
among the strongest in the retail space and we think the
record-high U.S. vehicle age (now 12.6 years) will help drive
auto aftermarket demand," said CFRA Research analyst Garrett
Nelson.
    AutoZone's net income in the quarter ended Aug. 31 rose to
$902.2 million or $51.58 per share, compared to analysts'
expectations of $53.53 per share, according to LSEG data.
    The company had reported $864.8 million or $46.46 per share
a year ago.
    Overall revenue rose about 9% to $6.2 billion, roughly in
line with analysts' estimates.

 (Reporting by Nathan Gomes in Bengaluru; Editing by Vijay
Kishore)
 ((Nathan.Gomes@thomsonreuters.com;))