AutoZone Beat Expectations But Not By Enough So Shares to Fall

This is getting a little post-modern for me. Shares of AutoZone (AZO) just reported blow-out earnings. The company earned $3.13 a share, 24 cents more than expectations. Obviously, consumers would rather fix up a car now rather than get a new one. Plus, the dealerships aren’t in the best of shape right now.
But here’s the weird part: The shares are trading lower in the pre-market. Why? Reuters writes:

Shares of the largest U.S. auto parts retailer fell 2.2 percent in premarket trading on Wednesday, with analysts noting that investors expected more from the company after a string of solid profit reports.

So they beat expectations but not by enough. Um…then what was the expectation?

Posted by on May 27th, 2009 at 9:21 am


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