AutoZone (NYSE:AZO) shares fell sharply Tuesday after the auto parts retailer reported fiscal second-quarter results that beat earnings expectations but came in slightly short on revenue.
The company posted earnings per share of $27.63, ahead of the analyst consensus of $27.17. However, revenue totaled $4.27 billion, missing forecasts of $4.31 billion.
Shares declined more than 7% in premarket trading following the announcement.
Net sales rose 8.1% year over year during the quarter. Comparable sales—covering domestic and international stores open for at least one year—increased 3.3% on a constant-currency basis.
In the U.S., comparable sales advanced 3.4% in constant currency, while international same-store sales grew 2.5%.
“I want to thank our AutoZoners across the company for delivering solid financial results this past quarter. We continue to be pleased with our strategies to grow sales,” said Phil Daniele, President and CEO of AutoZone.
“While our international sales, in constant currency, were slightly below our expectations, we believe our market share continues to grow as we outpace our competition in both Mexico and Brazil.”
Operating profit edged down 1.2% year over year to $698.5 million, reflecting ongoing cost pressures despite solid top-line growth.