AutoZone Inc (NYSE:AZO) shares are expected to drop ahead of Tuesday’s open after it released financial results for the second quarter.
Net sales were reported at US$2.4bn, up 5.4% compared to the comparative period of last year, with domestic same store sales up 2.2% although it missed Wall Street expectations.
The US tax reforms helped the business, with a US$171.4mln benefit to net income, although it also recorded US$193.2mln of impairments related to two business units that are being sold.
It reported net income of US$289.5mln, up 22.1% from the same period of 2016.
AutoZone stock was down US$22.08 or 3% to US$713.82 ahead of Tuesday’s open.