AutoZone Stock (AZO) Dips Into Earnings: What To Expect From Here

Shares of AutoZone, Inc. (NYSE: AZO) are trading at $3,766.96 as of December 9, 2025, down $55.20 or 1.44% from the previous close. The stock is exhibiting some weakness ahead of its earnings release scheduled for later today.

Investors are keenly awaiting AutoZone's earnings report, with analysts forecasting an earnings per share (EPS) of $32.35 for the current quarter. Revenue is projected to reach $4.41 billion. These figures will be closely compared to the same period last year to assess AutoZone's growth trajectory.

Over the past year, AZO's stock has fluctuated between $3,036.40 and $4,388.11, demonstrating considerable volatility in the market. The stock's performance has been influenced by various factors, including earnings reports, strategic decisions, and broader sector trends.

Technically, AutoZone's stock is currently trading below its 50-day simple moving average (SMA) of $3,945.46. It's also slightly below the 200-day SMA of $3,814.04. This positioning suggests potential short-term bearish momentum, although the proximity to the 200-day SMA could provide support.

AutoZone's recent fourth-quarter fiscal year 2025 earnings report, released on September 23, revealed an EPS of $48.71. This figure fell short of the consensus estimate of $50.80, leading to a decline in the stock price. The market's reaction underscores the high expectations surrounding AutoZone's financial performance.

Goldman Sachs has a Neutral rating on AutoZone with a price target of $3,894, citing the EPS miss and a premium valuation relative to near-term earnings growth prospects. Evercore ISI, on the other hand, reiterated an Outperform rating with a $4,500 price target, highlighting the company's strong same-store sales growth and overall revenue increase. These contrasting analyst opinions reflect the mixed sentiment surrounding AutoZone's outlook.

In August 2025, AutoZone's stock reached new all-time highs, peaking at $4,189 on August 27. This surge was fueled by robust financial performance and positive investor sentiment. However, the subsequent earnings report in September triggered a correction, illustrating the stock's sensitivity to earnings results.

AutoZone's Board of Directors authorized an additional $1.5 billion for its ongoing share repurchase program on October 8, 2025. This decision signals the company's commitment to returning value to shareholders and confidence in its financial health. The share repurchase program could provide support for the stock price in the coming months.

The company announced the upcoming retirements of Executive Vice President Bill Hackney and Senior Vice President Rick Smith in September 2025. These leadership transitions introduce a degree of uncertainty, potentially impacting the company's strategic direction and operational efficiency. The market reacted negatively to this news, with a 2.58% decline in the stock price on September 18.

PineStone Asset Management disclosed a reduction in its stake in AutoZone during the third quarter, selling 16,388 shares valued at approximately $65.7 million. Despite this sale, AutoZone remains a core holding for PineStone, representing 7.1% of its assets under management. This indicates that while PineStone adjusted its position, it still maintains significant confidence in AutoZone's long-term prospects.

The auto parts sector is currently facing headwinds due to proposed U.S. tariffs on auto parts and recent bankruptcies within the industry. These factors have contributed to increased volatility in AutoZone's stock performance. Investors should closely monitor these macroeconomic trends as they could impact AutoZone's future earnings.

Based on options data, the implied volatility for AZO is 29.55%, with an expected move of approximately $188.23 (4.92%) over the coming days.