This Car Stock Is the S&P 500’s Worst Performer Today. Here’s Why.

AutoZone posted weaker-than-expected quarterly results. (Billy Blume/Dreamstime.com)

Key Points

• AutoZone’s shares fell after reporting fiscal first-quarter earnings of $31.04 per share, missing estimates.
• Same-store sales increased 5.5%, slightly below the 5.6% estimate, marking a sixth consecutive quarter of accelerated growth.
• The company plans to aggressively open new stores, having added 53 net new locations globally in the first quarter.

AutoZone was the worst performer in the S&P 500 Tuesday after the automotive parts retailer reported weaker-than-expected quarterly results.

The company posted earnings of $31.04 a share for its fiscal first quarter, missing analysts’ consensus call for $32.71, according to FactSet. Same-store sales rose 4.7% on a constant-currency basis and 5.5% in total from the prior year, just below Wall Street’s estimate of 5.6%.

AutoZone stock was down 6.7% to $3,516.04 on Tuesday, putting it on pace for its largest single-day decline since 2022.

While Tuesday marked a sixth straight earnings miss for AutoZone, the retailer has also accelerated same-store sales growth for six consecutive quarters. That run helped power the stock to an 18% return this year as of Monday’s close. AutoZone was a Barron’s stock pick in March.

AutoZone has also been expanding its footprint, adding 53 net new locations globally in the first quarter.

“We plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share,” CEO Phil Daniele said in a statement.

Competitors O’Reilly Automotive and Advance Auto Parts were down 3.9% and 6.7%, respectively, on Tuesday.

Write to Nate Wolf at nate.wolf@barrons.com