UPDATE: AutoZone Beats Q1 Estimates

AutoZone AZO reported stronger-than-expected results for the fiscal first quarter. The Memphis, Tennessee-based company posted quarterly earnings of $238.3 million, or $7.27 per share, compared to $218.1 million, or $6.29 per share, in the year-ago period. Its revenue climbed 8% to $2.3 billion. However, analysts were expecting earnings of $7.16 per share on revenue of $2.21 billion. AutoZone's US same-store sales climbed 4.5%, versus economists' expectations for a 2.4% gain. Inventory rose 11.3% y/y in the period. Gross profit, as a percentage of sales, widened to 52.1% from 51.9%, while operating expenses, as a percentage of sales, widened to 34.0% from 33.5%. Under its share repurchase program, the company repurchased 571 thousand shares of its common stock for $300 million in the quarter. During the quarter, the company opened 22 new stores in the US, 4 new stores in Mexico, and completed the acquisition of IMC's 17 branches. “We are pleased to report our thirty-third consecutive quarter of double digit earnings per share growth. Our sales growth improved significantly this quarter which we believe was a result of our continued efforts to improve the business, most notably inventory availability, combined with lower gas prices and favorable weather in the last two weeks of our quarter,” said Bill Rhodes, Chairman, President and Chief Executive Officer. AutoZone shares fell 1.17% to close at $581.05 yesterday.