Spiking AutoZone shares roll completely over and tank on cost concerns raised on earnings call

Earnings


Sergio Flores | Bloomberg | Getty Images

A man walks outside an AutoZone store in Albuquerque, New Mexico.

AutoZone shares dropped 9.5 percent on Tuesday, erasing a sharp gain from earlier in the day, after worries of rising costs for the company were raised during its quarterly earnings call.

During the call, CEO William Rhodes said he expects selling, general and administrative expenses to rise between 6.5 and 7.5 percent for fiscal year 2019 as the company raises wages.

Those comments “would seem to [indicate] concerns about labor inflation and possible peak margin,” Jefferies analyst Bret Jordan told CNBC in an email.



Source link

Products You May Like

Articles You May Like

Parents are in the dark about how much college will cost 
Bottle of wine sells for a record $558,000
A college degree is worth more in some cities than others
Artificial intelligence is changing how investors’ money is managed
With yields above 3.1%, technician Louise Yamada is watching one level

Leave a Reply

Your email address will not be published. Required fields are marked *