Can AZO maintain its Q4 2024 revenue momentum?

**AutoZone's (AZO) ability to maintain its Q4 2024 revenue momentum appears challenging** based on several factors: 1. **Missed Revenue Expectations**: AutoZone fell short of Wall Street's revenue expectations in Q4 CY2024, reporting $4.28 billion in sales, which was slightly below the anticipated $4.31 billion. This marks the fourth time the company has missed revenue estimates over the past two years. 2. **Slowing Growth**: While sales increased by 2.1% year-on-year, this growth rate is slower than the 5.1% increase seen in the same quarter of the previous year. The deceleration in growth suggests that maintaining the momentum from the prior quarter might be difficult. 3. **Earnings Per Share (EPS) Concerns**: The company's EPS of $32.52 for the quarter was below analyst expectations of $33.64, indicating a 3.3% shortfall. This EPS miss, combined with the revenue shortfall, could signal underlying challenges in the business model that might impact future revenue growth. 4. **International Market Performance**: Although international same-store sales saw a robust increase of 9.9%, the domestic market showed only a modest rise of 0.3% in same-store sales. The domestic market's slower growth could hinder the company's overall revenue expansion efforts. 5. **Analyst Expectations**: Analysts anticipate a more modest growth rate of 2.8% year-on-year for revenue in Q1 2025, which is lower than the 9% increase seen in Q4 2024. This suggests that the momentum from Q4 2024 might not be easily sustained. In conclusion, while AutoZone has shown some positive signs in its international market performance and strategic initiatives, the challenges of meeting revenue expectations, the slowdown in growth, and the EPS miss indicate that maintaining the Q4 2024 revenue momentum could be a tough task for the company.