(Reuters) – Auto parts retailer AutoZone reported a lower-than-expected fourth-quarter profit on Tuesday, hurt by inflationary challenges, sending its shares down almost 5% in early trade.
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 $902.2 million or $51.58 per share, compared to analysts’ expectations of $53.53 per share, according to LSEG data.
The company had reported $864.8 million or $46.46 per share a year ago.
Overall revenue rose about 9% to $6.2 billion, roughly in line with analysts’ estimates.
(Reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore)
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