AutoZone Inc. (AZO) stock gained Tuesday after the auto-parts retailer reported fourth-quarter earnings above expectations, while revenue came in slightly below estimates.

AutoZone Beats Earnings Estimates

AutoZone reported fourth-quarter earnings of $56.05 per share, beating the analyst estimate of $53.98.

Revenue rose 5.6% year over year to $6.595 billion, slightly below Wall Street expectations of $6.681 billion.

Total same-store sales increased 2.7% during the quarter. Domestic same-store sales rose 1.6%, while international same-store sales climbed 10.7%. On a constant-currency basis, international same-store sales increased 1.3%.

Margins Expand, Cash Flow Rises

Gross margin expanded 182 basis points from a year earlier to 53.3%. Results included a 145-basis-point benefit from tariff refunds and a 105-basis-point net non-cash LIFO benefit.

Operating profit increased 10.1% to $1.3 billion. Net income rose to $931.6 million from $837 million a year earlier.

Operating cash flow increased to $1.18 billion from $990.82 million. AutoZone ended Aug. 29 with $326.12 million in cash and cash equivalents.

Inventory rose 10.1% year over year, mainly due to the company's growth initiatives.

AutoZone Expands Store Network

AutoZone opened 97 stores in the U.S., 68 in Mexico and 10 in Brazil during the quarter, bringing total net new openings to 175. That included 16 new U.S. Mega Hub locations.

The company also repurchased 223,000 shares for $697.5 million, or an average of $3,125 per share. AutoZone had $1.6 billion remaining under its share repurchase authorization at fiscal year-end.

Management Eyes Faster Growth

President and CEO Phil Daniele said sales improved during the final eight weeks of the quarter after a difficult start.

Management said available data showed continued market-share gains. AutoZone expects sales growth to accelerate across the U.S., Mexico and Brazil in fiscal 2027.

AZO Price Action: AutoZone shares were up 1.53% at $2846.12 during premarket trading on Tuesday, according to market data.