Autozone hits a speed bump after Q3 results miss

Shares of Autozone (AZO)recovered from early losses Tuesday after the company reported profit and sales that missed Wall Street estimates.

The auto parts retailer's stock dipped more than 2 percent in early trading after reporting an adjusted $10.77 per share for its third quarter, up 12.6 percent from the prior year but missing analysts' estimates by 15 cents, according to Thomson Reuters. The company cited weather in Midwestern, Middle Atlantic, and Northeastern states.

The stock quickly recovered 2.7 percent after the bell, trading near $760 Tuesday.

Autozone reported a 3 percent increase in revenue at $2.59 billion, missing Thomson Reuters consensus estimates of $2.65 billion. The company reported an inventory increase of 3.7 percent from the same period a year earlier, driven primarily by new store openings, the company said.

Autozone expanded the frequency of distribution center deliveries expects to be servicing 2,000 of their 5,000 domestic stores by the end of this fiscal year, President and CEO Bill Rhodes said in a statement.

"As we continue to strategically invest in our business in order to support our long term growth, remaining committed to our disciplined approach to growing operating earnings and utilizing our capital effectively, we are excited by our opportunities this summer," Rhodes said in a statement.

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During the quarter, AutoZone added 33 new stores in the U.S. and seven in Mexico, bringing the total to more than 5,700 branches. It plans to open four additional "Mega Hubs "by the end of the fiscal year, bringing the total to 11.

The stock is up 1.6 percent so far this year, and up 9.5 percent year over year.