AutoZone’s stock sinks toward 7-month low after rival Advance Auto Parts’ disappointing results, dividend cut

Shares of AutoZone Inc. AZO sank 6.4% toward a 7-month low in premarket trading Wednesday, in the wake of a disappointing earnings report from rival auto parts seller Advance Auto Parts Inc. AAP, which included cuts to its full-year guidance and its dividend amid a competitive pricing environment. AutoZone had reported last week a quarterly profit beat but sales that missed, citing weaker-than-expected March sales. At that time, AutoZone Chief Executive Officer William Rhodes had said he’d seen a competitor move their pricing, but saw no indications that competitor’s pricing was lower than AutoZone’s. Meanwhile, shares…