Auto parts retailer AutoZone misses Q3 sales estimates on inventory pile-up
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AZO | $2,619.41 | -33.63 | -1.27 |
” target=”_blank”>AutoZone Inc missed expectations for third-quarter net sales on Tuesday, as increased prices of automobile parts led to a rise in inventories, sending its shares 3.2% lower before the bell.
“Weaker-than-expected sales for the month of March meaningfully affected our results this quarter,” CEO Bill Rhodes said.
Elevated material costs and supply chain woes have led to U.S. auto suppliers hiking prices for their products across the board.
On the other hand, consumers weary of a looming recession have been tightening their purse strings and scaling back on discretionary spending.
Developing Story
Yelp shares jump
Yelp Inc.
$
32.52
Activist investor TCS Capital is calling on Yelp, the online review platform, to explore options.
“The purpose of this public letter is to express our serious concern and disappointment with the abysmal performance of Yelp’s stock price and to demand that the Board immediately explore strategic alternatives. We believe that Yelp is shockingly undervalued and could be sold to either a strategic or private equity buyer for at least $70 per share – or more than a 120% premium to Yelp’s current stock price based on reasonable valuation assumptions. Alternatively, we believe Yelp should explore a tax-free merger with Angi Inc. (“ANGI,” formerly known as Angie’s List) to form a powerhouse in the $500 billion home services market” the firm wrote in an open letter.
Shares are up 20% this year, outpacing the S&P 500’s 9% rise.
Breaking News
Lowe’s warns
Lowes Cos Inc.
$
203.15
Lowe’s cut it full its full-year outlook citing softer demand.
“We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather. Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
The home improvement retailer now expects to earn between $87-$89 billion down from the original $88 – $90 billion forecast.
Comp sales are expected to drop between 2% to 4%.
Yellen delivers another warning
Late Monday, U.S. Treasury Secretary Janet Yellen delivered another warning as the debt ceiling looms saying the government will not be able to pay its bills come June, most likely.
