February 26, 2026 at AutoZone Store in Richmond, CA.
David Paul Morris | Bloomberg | Getty Images
Autozone Co., Ltd. Even though the company’s third-quarter results on Tuesday beat Wall Street expectations, it marked its worst trading day in four years.
AutoZone stock closed 9% lower, its steepest decline since May 18, 2022, when it fell 9.5%. Stock prices continued to fall in after-hours trading.
The company reported earnings of $36.28 per share for the latest fiscal quarter, compared to what was expected to be $38.07, according to the average estimate compiled by LSEG. Sales of $4.84 billion matched LSEG’s forecast of $4.83 billion. The company’s fiscal quarter ended on May 9th.
Analysts at the company’s quarterly report meeting on Tuesday were concerned about lackluster growth internationally and compressed margins comparable to those of its competitors. They also questioned the year-over-year slowdown in sales, which the company blamed on cold weather.
“This sales decline was due to unseasonably cool weather impacting our thermal category, which typically begins to increase at this time of year as the summer heat begins to take hold,” AutoZone CEO Philip Daniel said on Tuesday.
auto parts inventory
Wall Street analysts also asked executives Tuesday about continued pressure on the business from inflation, energy costs and potential supply chain disruptions from the Iran war, particularly the potential for motor oil shortages.
AutoZone executives said they expect inflationary pressures to continue but to be “slightly subdued” given year-over-year rates. They also weren’t too concerned about potential problems with the supply of lubricants such as motor oil, which are reportedly affecting dealer operations. toyota motors and Nissan Motors.
“I know there’s a lot of noise out there about the lubricant issue. I’ll leave it to the petroleum experts to figure out what that actually means. I think there’s probably going to be some constraints, but I don’t think it’s going to be that material,” Daniele said.
Automotive website The Drive reported both. nissan Toyota recently issued a service bulletin to dealers instructing them to ration their motor oil inventory due to an impending shortage.
A Toyota spokesperson said the company “has nothing further to add on this matter at this time.” A Nissan spokesperson said the company is “working through supplier constraints that impact lubricant availability.”
“We are currently implementing temporary quota measures to maintain current prices and ensure consistent supply across our dealer network. We are also working with our supplier partners to identify additional sources. Our priority remains to support our dealers to ensure a great customer experience,” a Nissan spokesperson said in an emailed statement.
