FINWIRES · TerminalLIVE
FINWIRES

AutoZone Posts Mixed Fiscal Third-Quarter Results

By
AutoZone Posts Mixed Fiscal Third-Quarter Results

AutoZone (AZO) reported mixed fiscal third-quarter results on Tuesday, with earnings topping market estimates and revenue falling short.

The auto parts retailer posted net income of $38.07 a share for the three months through May 9, up from $35.36 the year before. The consensus on FactSet was for EPS of $36.21. Sales rose to $4.84 billion from $4.46 billion, but missed the Street's view for $4.86 billion.

Shares of the company plunged 9.5% in Tuesday trade.

Same-store sales increased 5.5%, topping the average analyst estimate for a 5.3% gain.

AutoZone's domestic growth slowed to 4.1% in the third quarter from 5% in the prior-year period. The print likely came in at the lower end of investor expectations that ranged from 4% to 5%, Truist Securities said in a client note.

Domestically, both do-it-yourself and commercial sales grew "impressively," Chief Executive Phil Daniele said in a statement. However, Truist Managing Director Scot Ciccarelli said "the DIY segment is still pressured due to economic issues/gas prices."

Gasoline prices in the US have surged as the Middle East conflict pushed crude oil costs higher due to the effective closure of the Strait of Hormuz.

Last week, Advance Auto Parts (AAP) reported comparable sales growth of 3.5% for its first quarter. Ciccarelli said it was against a "much easier" comparison and that Advance Auto Parts has "significantly more exposure" to the faster-growing commercial segment.

Truist still expects AutoZone to gain market share in the "favorable" do-it-yourself vertical, where it has more exposure than peers.

"While international performance has been below our plan, we believe our market share continues to grow," Daniele said.

Price: $3122.97, Change: $-283.53, Percent Change: -8.32%

Related Articles

Eli Lilly to Acquire Three Vaccine Developers for Up to $3.83 Billion
US Markets

Eli Lilly to Acquire Three Vaccine Developers for Up to $3.83 Billion

Eli Lilly (LLY) will acquire three vaccine developers in all-cash deals with a combined value of up to $3.83 billion, as the drugmaker aims to strengthen its infectious disease portfolio.The pharmaceutical giant on Tuesday agreed to purchase Curevo for up to $1.5 billion, LimmaTech Biologics for up to $780 million and Vaccine Company for up to $1.55 billion, including upfront and subsequent payments upon meeting certain milestones. Eli Lilly's shares were up 1.2% in the most recent premarket activity.The transactions will expand the company's research and development efforts in infectious diseases and reflect its strategy of investing in differentiated technology platforms, it said."These acquisitions reflect a deliberate strategy to prevent disease at its source rather than treat its consequences," Eli Lilly Chief Scientific and Product Officer Daniel Skovronsky said in a statement. "Combining these companies' platforms and teams with Lilly's global scale positions us to change that trajectory."The acquisition of Curevo will give Eli Lilly access to its lead product candidate, amezosvatein, which is currently being developed for the prevention of shingles in adults. "Lilly's global development and commercialization capabilities will accelerate and expand upon amezosvatein's significant potential," Curevo Chief Executive George Simeon said in a separate statement.Switzerland-based LimmaTech is developing vaccines against bacterial pathogens, with its LTB-SA7 lead program currently in phase 1 development as a vaccine against staphylococcus aureus. Vaccine Company's lead program is applying in vivo nanoparticle technologies to the Epstein-Barr virus, with a five-antigen phase 1-ready candidate.Last month, Eli Lilly agreed to acquire clinical-stage biotechnology firm Kelonia Therapeutics for up to $7 billion to bolster its cancer treatment portfolio. Earlier in the year, Lilly announced an up to $7.8 billion deal to purchase UK-based Centessa Pharmaceuticals and also agreed to buy Orna Therapeutics, a biotechnology company focused on engineering immune cells, for up to $2.4 billion.In April, the drugmaker raised its full-year outlook and reported better-than-expected first-quarter results.

$LLY
Update: Google Seeks Resolution to EU Antitrust Probe Amid Reports of Record Fine
US Markets

Update: Google Seeks Resolution to EU Antitrust Probe Amid Reports of Record Fine

(Updates stock movement and adds statement from the European Commission)Alphabet's (ABEA.F) Google said Tuesday it is "keen" to resolve an ongoing antitrust probe by the European Union after reports emerged that Brussels is preparing to impose its largest-ever penalty for suspected violations of the bloc's Digital Markets Act."We are keen to bring this investigation to a close so we can get back to developing innovative products for our users," a Google spokesperson told. "The changes we've already made to Search under the DMA represent the biggest downgrade in the product's history, creating a second-rate experience for Europeans to the benefit of a few self-interested complainants."Meanwhile, a European Commission spokesperson told MT that the body is having "extensive discussions" with Google on future compliance solutions, saying that simply issuing a fine "formalises the infringement without solving the issue at hand.""Even with our negotiations on future solutions, we will not hesitate to move to the next steps as soon as possible," the spokesperson said.Launched in March 2025, the investigation into an alleged breach of the DMA focused on concerns that Google prioritized its own services within search results. The probe was part of broader efforts by the European Commission to ensure the tech company complied with local laws.The fine is projected to reach the high hundreds of millions of euros and will likely be finalized before the summer recess, Germany's Handelsblatt newspaper reported Monday, citing sources at the European Commission. The sources noted that European Commission President Ursula von der Leyen holds the final authority on the exact amount of the fine.Earlier in May, EU regulators gave Google "a bit more time" to address the antitrust concerns after its initial proposals were deemed "simply not strong enough," according to European Commission spokesperson Thomas Regnier.Alphabet's Frankfurt-listed stock was over 2% in the red by Tuesday afternoon.

$ABEA.F
Stocks Rise Pre-Bell as Investors Monitor Latest Middle East Developments, Await Key Economic Data
US Markets

Stocks Rise Pre-Bell as Investors Monitor Latest Middle East Developments, Await Key Economic Data

The benchmark US stock measures were pointing higher before the opening bell Tuesday as traders assess the latest developments in the Middle East and await key economic data later in the week.The S&P 500 rose 0.6%, the Dow Jones Industrial Average gained 0.5% and the Nasdaq added nearly 1% in premarket activity. The indexes finished Friday trading in the green, with the Dow hitting a new record high.US markets were closed on Monday for the Memorial Day holiday.The US military said it carried out strikes in southern Iran on Monday, targeting missile launch locations and vessels allegedly trying to deploy mines, CNBC reported. The US Central Command said the strikes were intended "to protect our troops from threats posed by Iranian forces," the report added.Iran's Islamic Revolutionary Guard Corps reportedly said Tuesday it would retaliate against violations of the ongoing ceasefire.The incident occurred after President Donald Trump said in a social media post on Monday that negotiations with Iran were "proceeding nicely." In a separate post, Trump said that Iran's enriched uranium "will either be immediately turned over to the US" or be destroyed in place or at another "acceptable location."Tehran's semi-official Tasnim news agency reportedly described recent discussions with the US as "overall good," but said that a memorandum of understanding between the two countries would be subject to the release of $24 billion in frozen Iranian funds.West Texas Intermediate crude oil declined 4.4% to $92.31 a barrel before the open, while Brent fell 4.7% to $95.6.The personal income and outlays report for April is scheduled to be released on Thursday. The report includes the personal consumption expenditure core price index, the Federal Reserve's preferred inflation metric. The second estimate report of the first-quarter gross domestic product is also due on Thursday.Treasury yields fell in premarket action, with the two-year rate retreating 6.5 basis points to 4.06% and the 10-year rate declining 7.6 basis points to 4.5%.Tuesday's economic calendar has the Chicago Fed national activity index for last month at 8:30 am ET, followed by the Case-Shiller Home Price Index and the Federal Housing Finance Agency House Price Index, both for March at 9 am. The consumer confidence report for May is out at 10 am, followed by the Dallas Fed manufacturing survey for the same month at 10:30 am.Costco Wholesale (COST), Marvell Technology (MRVL), Salesforce (CRM) and Dell Technologies (DELL) are some of the major companies slated to release their latest financial results this week.AutoZone (AZO) posts earnings before the bell, among others, while Zscaler (ZS) is expected to announce its results after the markets close.Gold edged up 0.2% to $4,531 per troy ounce, while bitcoin slipped 0.3% to $77,121.

$^DJI$^IXIC$^SPX$AZO$COST$CRM$DELL$MRVL$ZS