AutoZone's Fiscal Fourth-Quarter Estimates Cut at Oppenheimer Amid Impact of Higher Oil Prices

10:54 AM EDT, 09/18/2026 (MT Newswires) -- AutoZone's (AZO) fiscal fourth-quarter results are likely to face pressure as surging oil prices weigh on demand, Oppenheimer said in a Friday client note as it lowered its estimates for the auto-parts retailer. The brokerage lowered its fourth-quarter projection for the company's earnings per share to $51.21 from $53.84. It now expects the company's comparable sales for the quarter to be flat to up 2%, down from its previous expectation for 2% to 4% growth. The current consensus on FactSet is for EPS of $54.08 and comparable sales growth of 3.8%. AutoZone will release its quarterly results on Tuesday. Oppenheimer remains encouraged by AutoZone's strategic investments and their potential to support further market-share gains. However, the brokerage believes the recent surge in oil prices is worsening an already challenging macroeconomic backdrop and putting greater pressure on do-it-yourself demand. Oil prices recently spiked amid intensifying hostilities in the Middle East, while diesel in the US has hit record highs. Benchmark West Texas Intermediate and Brent crude prices are up about 19% and 14%, respectively, so far this month after advancing in each of the previous two months. Last week, preliminary results of a University of Michigan survey showed US consumer sentiment weakened in September, while inflation expectations rose. The Federal Reserve raised its key interest rate on Wednesday for the first time since 2023 in what is widely seen as the start of a policy tightening cycle in order to curb sticky inflation. Oppenheimer trimmed its price target for AutoZone shares to $3,500 from $4,300, though it maintained its outperform rating on the stock. Shares of AutoZone have fallen 16% so far this year. "A now historically depressed valuation for (AutoZone) should lend support to shares, amid continued, cyclical fundamental softness," the note said. "Longer-term focused clients are advised to use any pullback in AZO as a buying opportunity." Last month, AutoZone rival Advance Auto Parts (AAP) raised its full-year earnings outlook even after its fiscal second-quarter comparable sales unexpectedly declined amid weakness in the DIY channel. In July, O'Reilly Automotive (ORLY) lifted its full-year outlook as it reported better-than-expected second-quarter comparable store sales growth. Price: 2847.54, Change: +3.22, Percent Change: +0.11