AutoZone shares rise on strong Q3 results
Memphis-based auto replacement parts retailer AutoZone (NYSE:AZO) reported Tuesday that profit and revenue rose during the third quarter as domestic same store sales increased more than 5%.
On Tuesday morning, the company's shares jumped 6.03% to trade at $293.40 as of 10 a.m. EST.
For the three months ending May 7, net income rose to $227.4 million, or $5.29 per share, compared to $202.7 million, or $4.12 per share, in the year-ago quarter. The results beat analyst forecasts of $4.98 a share.
The company reported net sales of $1.98 billion, an increase of 8.6% from the third quarter of fiscal 2010. Domestic same store sales, or sales for those stores open at least one year, increased 5.3% for the quarter.
"This marks the tenth consecutive quarter of 20% plus growth in earnings per share and our nineteenth consecutive quarter of double digit growth," said president and CEO Bill Rhodes.
Autzone, which opened 43 new stores during the quarter, said that gross margin improved to 51.2% versus 50.7% a year earlier, due to lower shrink expense and higher merchandise margins on account of increased penetration of Duralast product sales.
The company said inventory grew 8.9%, driven by the rise in store count and continued strategic investments in hard parts assortment.
During the latest quarter, AutoZone, under its share repurchase program, bought back 1.3 million shares of its common stock for $339 million, at an average price of $267 per share. At quarter-end, the company had $152 million left under the current program.
The company has a total of 4,467 stores across the United States and 261 stores in Mexico.
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