UPDATE: AutoZone Tops Q2 Expectations

reported stronger-than-expected earnings for its fiscal second quarter. The Memphis, Tennessee-based company posted a quarterly profit of $211.7 million, or $6.51 per share, versus a year-ago profit of $192.8 million, or $5.63 per share. Its total sales surged 7.7% to $2.14 billion. However, analysts were expecting earnings of $6.38 per share on revenue of $2.12 billion. Its domestic same-store sales climbed 3.6% in the quarter. Gross profit, as a percentage of sales, widened to 52.2% from 52.1%, while operating expenses, as a percentage of sales, rise to 35.4% from 35.2%. During the quarter, the company repurchased 43 thousand shares of its common stock for $26 million at an average price of $606 per share. AutoZone's inventory rose 11.9% versus the year-ago period. During the quarter, AutoZone opened 37 new stores in the U.S., 5 new stores in Mexico, closed 1 store in the U.S., and relocated 1 store in the U.S. "We are pleased to report our thirty-fourth consecutive quarter of double digit earnings per share growth…While we have continued to strategically invest in our business in order to support our growth, we remain committed to our disciplined approach to growing operating earnings and utilizing our capital effectively," said Bill Rhodes, Chairman, President and Chief Executive Officer. AutoZone shares gained 1.07% to close at $649.53 yesterday.