AutoZone Shares Fall 4% Despite Earnings Beat on Revenue Miss

AutoZone (NYSE: AZO) shares declined 4% intra-day Tuesday after the auto parts retailer posted fiscal second-quarter results that exceeded profit expectations but fell short on revenue.

The company reported earnings per share of $27.63, ahead of the $27.17 analyst estimate. Revenue totaled $4.27 billion, slightly below the consensus forecast of $4.31 billion.

Net sales increased 8.1% year over year. Same-store sales, defined as sales from domestic and international locations open at least one year, rose 3.3% on a constant-currency basis.

Domestic comparable sales advanced 3.4% in constant currency, while international same-store sales grew 2.5%.

Chief Executive Officer Phil Daniele thanked employees for delivering solid results and said the company remained encouraged by its sales growth strategies. He noted that while international sales in constant currency came in slightly below expectations, AutoZone believes it continues to gain market share by outperforming competitors in Mexico and Brazil.

Operating profit declined 1.2% year over year to $698.5 million.