All. I received some information from AutoZone public relations today that sheds light on a couple of earlier points.
First, there was no formal meeting with analysts recently.
Second, the suspected reason for analysts shaving 2Q estimates is that they might have reduced replacement parts sales forecasts due to warm weather in much of the country. The bulk of sales for the Winter quarter come from parts that fail due to the cold (e.g., batteries, radiators, etc.) Also, price competition on winter related commodity items (e.g., antifreeze) might have a slight impact. Also, it was mentioned that some analysts might have felt the issue to be a bit pricey after the pop that occurred upon its addition to the S&P 500.
Finally, the commercial program seems to be on track, with some stores already showing a profit, with the company to show a net profit next quarter (ending in April). |
