This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

AutoZone Skids as Same-Store Sales Stall

Fox found plenty to fret about. He pointed out that second-quarter cash flow, prior to share repurchases, slid from $55 million to $4 million. He also noted that total debt had jumped both sequentially and year over year.

But he dwelled on the company's sales trends in particular. Over the past two years, he noted, the company's retail sales comps have slid into negative territory. Meanwhile, he added, the company's commercial comps are increasing at less than half their old rate.

AutoZone's latest results looked particularly weak when compared to the surging growth recently posted by competitors.

"Recall that O'Reilly (ORLY - Get Report) and Advance Auto Parts (AAP - Get Report) reported positive, high-single-digit comps for their most recent quarters," Fox reminded readers. "We believe that AutoZone's emphasis on margins is causing it to lose market share."

Some analysts had banked on AutoZone riding the strong industry trend. But at least one hinted at a possible downgrade if AutoZone detoured from that path.

Whitaker Securities analyst Cid Wilson said he'd be focusing on sales to retail "do-it-yourselfers" -- which fell short of expectations -- when evaluating the company's prospects.

"If we see signs that AutoZone is participating in the upswing in DIY sales seen at other auto parts retailers, this could be a buying opportunity," wrote Wilson, who rated the stock outperform prior to Wednesday's report. "But if AutoZone and Advance see a divergence in sales, it could warrant a review in our rating and thesis."

AutoZone weathered at least three downgrades after it last disappointed analysts three months ago.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAP $144.01 -3.80%
AZO $688.59 0.94%
ORLY $214.24 -0.92%
AAPL $124.25 -0.14%
FB $81.36 -1.00%


DOW 17,672.09 -104.03 -0.59%
S&P 500 2,059.19 -8.70 -0.42%
NASDAQ 4,870.79 -30.0950 -0.61%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs