AutoZone Q1 Profit Tops Views

AutoZone, Inc. AZO reported better-than-expected earnings for its fiscal third quarter on Tuesday. The Memphis, Tennessee-based company posted a quarterly profit of $309.1 million, or $9.57 per share, compared to $285.2 million, or $8.46 per share, in the year-ago period. Its net sales rose 6.5 percent year-over-year to $2.49 billion. However, analysts were expecting a profit of $9.52 per share on revenue of $2.5 billion. The average estimate among 14 Estimize users was for earnings of $9.52 per share and revenue of $2.51 billion. Domestic same store sales gained 2.3 percent for the quarter. Its gross profit, as a percentage of sales, widened to 52.3 percent, from 52.0 percent in the year-ago period. Operating expenses, as a percentage of sales, increase to 31.6 percent from 31.5 percent. Its inventory climbed 10.7 percent year-over-year. Under its share repurchase program, the company repurchased 763 thousand shares of its common stock at an average price of $675 per share in the quarter. "We are pleased to report our thirty-fifth consecutive quarter of double digit earnings per share growth. AutoZoners across the company remain committed to providing superior service to our customers and that dedication has resulted in consistent, solid performance…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 rose 0.08 percent to $689.70 in pre-market trading.