UPDATE: AutoZone Posts Rise In FQ3 Profit

AutoZone (NYSE: AZO) reported a rise in its fiscal third-quarter profit.AutoZone's quarterly earnings surged to $285.2 million, or $8.46 per share, versus $265.6 million, or $7.27 per share, in the year-ago quarter. Its sales increased 6.2% to $2.34 billion, while domestic same store sales gained 4.0% for the quarter. However, analysts were expecting earnings of $8.45 per share on sales of $2.3 billion.AutoZone's gross profit widened to 52.0% from 51.8%, while operating expenses increased to 31.5% from 31.1%.AutoZone's inventory rose 12.0% over the same period last year.Bill Rhodes, Chairman, President and Chief Executive Officer said, "We are pleased to report our thirty-first consecutive quarter of double digit earnings per share growth. AutoZoners across the company are dedicated to providing superior service to our customers and that dedication is evidenced in our consistently strong performance. For the third quarter, overall our sales performance was generally consistent with the second quarter. While failure related categories were particularly strong in the second quarter, as expected, the deferrable maintenance categories rebounded in the third quarter and we expect that trend to continue through the summer. Our inventory availability test initiatives continue to show promise although we still have significant testing to complete before we determine our long-term approach. As we have routinely stated, we will remain committed to our disciplined approach to growing operating earnings and utilizing our capital effectively."AutoZone opened 30 new stores in the US and 7 new stores in Mexico during the quarter ended May 10, 2014.AutoZone shares fell 0.14% to close at $540.90 on Friday.