11:04 AM EDT, 05/21/2024 (MT Newswires) -- AutoZone ( AZO ) reported mixed fiscal third-quarter results on Tuesday with revenue missing Wall Street expectations amid flat domestic comparable sales.

Revenue rose to $4.24 billion for the three months ended May 4 from $4.09 billion the year earlier but was below the $4.3 billion average analyst estimate on Capital IQ. Earnings per share advanced to $36.69 from $34.12 year over year, beating the Street's $35.99 view.

Constant currency same store sales rose 0.9%, reflecting a 9.3% increase in the auto parts retailer's international markets that was partially offset by flat domestic comparable sales. Gross profit as a percentage of sales improved 102 basis points to 53.5%, buoyed in part by higher merchandise margins.

Domestic sales performance was negatively impacted due to the timing of tax refunds and unusually cool weather across several areas of the US, Chief Executive Phil Daniele said in a statement. Shares of AutoZone ( AZO ) fell 3.1% in Tuesday trade.

"In spite of our lower-than-planned sales, we managed our business well, and we were able to deliver bottom line results that continue to build on the phenomenal results we've had over the last several years," he told analysts on a conference call, according to a Capital IQ transcript.

Weather is expected to be less volatile in the current quarter, Daniele said on the call.

AutoZone ( AZO ) is being impacted more than its peers by economic pressures affecting lower-income consumers, a reflection of its heavier do-it-yourself product mix, Truist Securities Managing Director Scot Ciccarelli said in a note. The brokerage had been modeling for domestic comps to climb 1.5% to 2%.

"We expected a bit more of a pickup (in sales) as comparisons have continued to ease," Ciccarelli said. Truist remains bullish on the industry's long-term growth trajectory and sees AutoZone ( AZO ) as a vertical leader. The brokerage reiterated a buy rating with a $3,523 price target on the stock.

Price: 2832.03, Change: -92.01, Percent Change: -3.15