AutoZone (AZO) Down 3% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for AutoZone (AZO). Shares have lost about 3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is AutoZone due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for AutoZone, Inc. before we dive into how investors and analysts have reacted as of late.AutoZone Q1 Earnings & Revenues Fall Short of ExpectationsAutoZone reported earnings of $31.04 per share for the first quarter of fiscal 2026 (ended Nov. 22, 2025), which missed the Zacks Consensus Estimate of $32.24. The company had reported earnings of $32.52 per share in the corresponding quarter of fiscal 2025. Net sales grew 8.2% year over year to $4.63 billion but marginally lagged the Zacks Consensus Estimate of $4.64 billion.Key TidbitsIn the reported quarter, domestic commercial sales totaled $1.29 billion, up from $1.12 billion recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) were up 4.8%. Gross profit increased to $2.35 billion from the prior-year quarter’s $2.26 billion. Operating profit decreased 6.8% year over year to $784.2 million.During the quarter, AutoZone opened 39 new stores in the United States. It opened 12 new stores in Mexico and two in Brazil. It exited the quarter with 6,666 stores in the United States, 895 in Mexico and 149 in Brazil. The total store count was 7,710 as of Nov. 22, 2025.Its inventory increased 13.9% year over year in the reported quarter amid new store growth and same store sales growth initiatives. At quarter-end, net inventory per store was negative $145,000 compared with negative $166,000 a year ago.As of Nov. 22, 2025, AutoZone had cash and cash equivalents of $287.6 million, up from $271.8 million as of Aug. 30, 2025. Its total debt amounted to $8.62 billion as of Nov 22, 2025, compared with $8.79 billion as of Aug. 30, 2025.The company repurchased 108,000 shares of its common stock for $431.1 million during the fiscal first quarter at an average price of $3,999 per share. At quarter-end, it had $1.7 billion remaining under its current share repurchase authorization.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.VGM ScoresAt this time, AutoZone has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks