AutoZone Stock Plummets 6% on Weak Comparable Sales Growth

AutoZone (NYSE:AZO) shares plunged nearly 6% on Tuesday after the company reported a slowdown in comparable sales, mainly because of the weak demand in March.

Q3 EPS was $34.12, compared to the Street estimate of $31.41. Revenue came in at $4.09 billion, compared to the Street estimate of $4.12 billion.

Domestic comp store sales growth tracked below expectations at 1.9% (vs. Street estimate of 4.1%), reflecting the impacts of weather-related disruptions in March and below-plan commercial sales growth.

While the company does not provide formal financial guidance, management maintained its expectations for double-digit growth in its commercial segment, though returning to such levels could take one or two quarters.