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AutoZone Preps For Q1 Earnings: Stock Repurchases, Declining Profits, EPS — Here's What You Need To Know

Benzinga·12/08/2025 13:02:29
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Automotive parts retailer AutoZone Inc. (NYSE:AZO) will host its first-quarter earnings call for the fiscal year 2026 on December 9. Here's what you need to know about AutoZone.

AutoZone's Q4 Earnings

The company reported a growth of 6.9% in its sales during Q4 2025. It also reported a 7.8% decrease in operating profit to $1.2 billion, while the company's EPS was down to $48.71 from $51.58, a 5.6% decrease. "Operating expenses, as a percentage of sales, were 33.6% versus last year at 32.6%," the company said.

Stock Repurchase

In October, the company authorized an additional stock purchase of $1.5 billion, with the company adding that the stock repurchase program has resulted in $40.7 billion in share repurchases since 1998.

The company also announced it repurchased 447 thousand shares at an average price of $3,425, for a total investment of $1.5 billion for the fiscal year 2025.

AutoZone Analyst Ratings

Baird analyst Justin Kleber upgraded the stock to an Outperform rating and announced a price target of $4,500 for the company. Meanwhile, analyst Christopher Horvers maintained an Overweight rating for the stock, citing resilient demand and improving long-term earnings power. Horvers shared a price forecast of $4,850.

AutoZone Tariff Woes

Meanwhile, AutoZone CEO Philip B. Daniele has shared that tariffs on auto parts imposed by President Donald Trump have affected DIY car mechanics, causing them to delay some projects.

"Customers can defer that maintenance for some period of time, but ultimately they realize that they’ve got to fix it or it creates more damage," Daniele said during AutoZone's earnings call in September.

AutoZone scores satisfactorily on the Momentum and Growth, but offers poor Value. It also has a favorable price trend in the Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: AZO was trading at $3822.73 during Pre-market trading, according to Benzinga Pro data.

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