AutoZone's SG&A Investments to Pressure Earnings Growth -- Market Talk

Dow Jones01-06

1139 ET - AutoZone's results have missed expectations in the past several quarters and higher costs will continue to pose earnings risk, say Mizuho analysts David Bellinger and Declan Kelley, who downgrade the stock to neutral. "The cost of doing business is moving structurally higher," the analysts say. "Planned unit growth acceleration and related infrastructure investments are occurring at a time of high parts inflation and questions around the durability of demand trends," they say. That makes it difficult to see a path to the double-digit percentage annual earnings growth AutoZone typically posts, they say. "We view Street estimates as currently misaligned and overly optimistic," the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

January 05, 2026 11:39 ET (16:39 GMT)

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That makes it difficult to see a path to the double-digit percentage annual earnings growth AutoZone typically posts, they say. \"We view Street estimates as currently misaligned and overly optimistic,\" the analysts say. 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That makes it difficult to see a path to the double-digit percentage annual earnings growth AutoZone typically posts, they say. \"We view Street estimates as currently misaligned and overly optimistic,\" the analysts say. 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That makes it difficult to see a path to the double-digit percentage annual earnings growth AutoZone typically posts, they say. \"We view Street estimates as currently misaligned and overly optimistic,\" the analysts say. 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That makes it difficult to see a path to the double-digit percentage annual earnings growth AutoZone typically posts, they say. \"We view Street estimates as currently misaligned and overly optimistic,\" the analysts say. 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