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 and O'Reilly Automotive 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 USD 902.2 million or USD 51.58 per share, compared to analysts' expectations of USD 53.53 per share, according to LSEG data.
The company had reported USD 864.8 million or USD 46.46 per share a year ago.
Overall revenue rose about 9% to USD 6.2 billion, roughly in line with analysts' estimates.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
