Automotive parts retailer AutoZone AZO is set to report fiscal fourth-quarter earnings results next Tuesday before the opening bell. Reduced delivery times and an enhanced sales force has the stock trading near all-time highs. But a stretched balance sheet and high interest expenses raise concerns.

AutoZone, currently a Zacks Rank #4 (Sell), has a long history of exceeding earnings estimates. The company is expected to deliver Q4 earnings of $53.61 per share, reflecting a 15.4% improvement relative to the same quarter last year. AutoZone has posted a trailing four-quarter average earnings surprise of 5.75%.

Revenues are anticipated to have risen 9% to $6.2 billion during the fourth quarter. AutoZone has generated record sales for 34 consecutive years.

Earnings estimates have slightly declined over the past 60 days. As stocks can be volatile surrounding earnings announcements, investors should proceed with caution heading into the results.

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