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Why Is AutoZone (AZO) Down 7.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for AutoZone (AZO - Free Report) . Shares have lost about 7.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AutoZone due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
AutoZone reported earnings of $27.63 per share for the second quarter of fiscal 2026 (ended Feb. 14, 2026), beating the Zacks Consensus Estimate of $27.1. The company had posted earnings of $28.29 per share in the year-ago quarter.
Net sales rose 8.2% year over year to $4.27 billion but slightly missed the Zacks Consensus Estimate of $4.31 billion.
Key Tidbits
In the reported quarter, domestic commercial sales totaled $1.15 billion, up from $1.05 billion in the year-ago period. Domestic same-store sales (sales at stores open at least a year) rose 3.4%.
Gross profit rose to $2.24 billion from $2.13 billion in the prior-year quarter. Operating profit fell 1.2% year over year to $698.5 million.
During the quarter, AutoZone opened 43 new stores in the United States, 18 in Mexico and three in Brazil. The company ended the quarter with 6,709 stores in the United States, 913 in Mexico and 152 in Brazil, taking the total store count to 7,774 as of Feb. 14, 2026.
Inventory rose 13.1% year over year in the reported quarter, driven by growth initiatives and inflation. At quarter-end, net inventory per store was negative $105,000 compared with negative $161,000 a year earlier.
As of Feb. 14, 2026, AutoZone had cash and cash equivalents of $285.5 million, up from $271.8 million as of Aug. 30, 2025. Total debt stood at $8.9 billion as of Feb. 14, 2026, compared with $8.79 billion as of Aug. 30, 2025.
The company repurchased 85,000 shares of its common stock for $310.8 million during the fiscal second quarter at an average price of $3,666 per share. At quarter-end, it had $1.4 billion remaining under its current share repurchase authorization.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, AutoZone has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is AutoZone (AZO) Down 7.8% Since Last Earnings Report?
A month has gone by since the last earnings report for AutoZone (AZO - Free Report) . Shares have lost about 7.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AutoZone due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
AutoZone Q2 Earnings Beats Expectations, Revenues Rise Y/Y
AutoZone reported earnings of $27.63 per share for the second quarter of fiscal 2026 (ended Feb. 14, 2026), beating the Zacks Consensus Estimate of $27.1. The company had posted earnings of $28.29 per share in the year-ago quarter.
Net sales rose 8.2% year over year to $4.27 billion but slightly missed the Zacks Consensus Estimate of $4.31 billion.
Key Tidbits
In the reported quarter, domestic commercial sales totaled $1.15 billion, up from $1.05 billion in the year-ago period. Domestic same-store sales (sales at stores open at least a year) rose 3.4%.
Gross profit rose to $2.24 billion from $2.13 billion in the prior-year quarter. Operating profit fell 1.2% year over year to $698.5 million.
During the quarter, AutoZone opened 43 new stores in the United States, 18 in Mexico and three in Brazil. The company ended the quarter with 6,709 stores in the United States, 913 in Mexico and 152 in Brazil, taking the total store count to 7,774 as of Feb. 14, 2026.
Inventory rose 13.1% year over year in the reported quarter, driven by growth initiatives and inflation. At quarter-end, net inventory per store was negative $105,000 compared with negative $161,000 a year earlier.
As of Feb. 14, 2026, AutoZone had cash and cash equivalents of $285.5 million, up from $271.8 million as of Aug. 30, 2025. Total debt stood at $8.9 billion as of Feb. 14, 2026, compared with $8.79 billion as of Aug. 30, 2025.
The company repurchased 85,000 shares of its common stock for $310.8 million during the fiscal second quarter at an average price of $3,666 per share. At quarter-end, it had $1.4 billion remaining under its current share repurchase authorization.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, AutoZone has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.