AutoZone shares drop 10% after Q3 revenue misses estimates despite earnings beat

AutoZone reported fiscal Q3 earnings per share of $38.07, beating estimates of $36.22, but revenue of $4.84 billion fell slightly short of the $4.86 billion expected. The company saw a 3.9% increase in total same-store sales on a constant-currency basis, with domestic sales up 4.1%. Despite international challenges in Mexico and Brazil, AutoZone is expanding its store footprint and repurchasing shares, aiming to increase earnings and cash flow to boost shareholder value. Inventory rose 10.8% due to growth initiatives and inflation.