What to Expect From AutoZone's Next Quarterly Earnings Report

Company Overview - AutoZone, Inc. (AZO) has a market capitalization of $60.8 billion and is a leading retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil, offering a wide range of products and services for various vehicles [1] Earnings Expectations - Analysts anticipate that AutoZone will report a profit of $27.19 per share for fiscal Q2 2026, representing a decline of 3.9% from $28.29 per share in the same quarter last year [2] - For fiscal 2026, the expected EPS is $148.55, which is an increase of 2.5% from $144.87 in fiscal 2025, with further growth projected to 18.7% year-over-year to $176.25 in fiscal 2027 [3] Stock Performance - Over the past 52 weeks, AutoZone's shares have increased by 11.3%, which is below the S&P 500 Index's gain of 13.7%, but has outperformed the State Street Consumer Discretionary Select Sector SPDR ETF's return of 5.2% [4] Recent Financial Results - AutoZone's shares fell by 7.2% on December 9 after reporting Q1 2026 EPS of $31.04 and revenue of $4.63 billion, both of which were below forecasts. Despite an 8.2% increase in net sales and a 4.7% gain in same-store sales, operating profit declined by 6.8% to $784.2 million, and net income decreased to $530.8 million. A significant concern was a 203-basis-point drop in gross margin to 51%, primarily due to a 212-basis-point non-cash LIFO impact and increased operating expenses related to growth investments [5] Analyst Ratings - The consensus among analysts for AutoZone's stock is bullish, with a "Strong Buy" rating overall. Out of 29 analysts, 21 recommend "Strong Buy," 2 suggest "Moderate Buy," and 6 indicate "Hold." The average price target for AutoZone is $4,265.35, indicating a potential upside of 16.2% from current levels [6]