AutoZone (AZO) stock dropped today after the automotive parts retailer released its earnings report for Fiscal Q2 2025. The bad news started with the company’s diluted earnings per share of $28.29, which missed Wall Street’s estimate of $29.05. It also represented a roughly 2% drop year-over-year from $28.89 per share. It’s worth noting that gross profit, as a percentage of sales, was flat at 53.9%.
Another blow to AZO stock came from AutoZone’s revenue of $3.95 billion. That’s another miss next to analysts’ estimated $3.98 billion for the period. This is despite a 2.3% increase from the $3.86 billion reported in Fiscal Q2 2024. The U.S. company saw strong international performance but faced troubles back home due to currency rate changes.
AZO stock hasn’t fared well in pre-market trading today with the company’s stock down 1.09% as of this writing. That follows a 0.44% drop yesterday leading into its latest earnings report. However, the stock is still up 8.61% year-to-date and 12.08% over the past 52 weeks.
What to Expect from AutoZone in 2025
AutoZone President and CEO Phil Daniele spoke about the company’s future in its latest earnings report. He claimed it’s “excited about our momentum heading into the back half of the fiscal year,” and noted it is “well prepared for our spring and summer selling season.”
AutoZone plans to continue investments in its business, including opening new international stores to take advantage of its growing strength overseas. During the latest quarter, it opened 28 new stores in the U.S., 13 in Mexico, and four in Brazil.
Is AZO Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate is Strong Buy based on 17 Buy and two Hold ratings over the last three months. With that comes an average price target of $3,678.42, a high of $3,900, and a low of $3,350. This represents a potential 5.77% upside for AZO stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
