AutoZone Inc. (AZO) Posts Q3 Results
Shares of AutoZone Inc. (NYSE: AZO) jumped more than 4% in today�s trading. The stock reached a high of $193.74 in trading. At last check, it was up 4.54% to $192.62, with volume up from daily average of 429,000 to 1.43 million. Memphis, Tennessee-based AutoZone is involved in the retailing and distribution of automotive replacement parts and accessories.
AutoZone today reported its third-quarter results, posting net sales of $1.8 billion in the quarter, up 9.9% from the same period last year. Same-store sales increased 7.1% in the quarter. Net income increased 16.7% to $202.7 million. Diluted EPS increased 31.5% to $4.12 in the quarter. The company�s gross margin improved from 50.2% to 50.7%. The improvement in gross margin can be mainly attributed to higher merchandise margins. Also, the company repurchased 1.5 million of its shares of common stock for $266 million in the quarter. The company is authorized to buyback another $251 million worth of its shares.
Commenting on the third-quarter results, Bill Rhodes, chairman, president, and CEO of AutoZone, said that the company�s plan remains consistent as it continues to focus on improving parts coverage. Rhodes said that the company remains focused on growing its operating earnings and utilizing its capital effectively.
AutoZone will continue to benefit as the U.S. economy recovers from the recession as it looks for a complete rebound in the crucial consumer spending. Recent data that has come out indicates that there has been a rebound in consumer spending, which is good sign for the company.
AutoZone�s stock is trading above its 50-day and 200-day moving averages, at the moment. It has a 52-week range of $135.13-$193.74, which was reached in today�s trading. The stock has a beta of 0.52, which is in-line with the beta for other major U.S. auto part sellers. Currently, the stock has a consensus recommendation of Outperform, with 9 Buy and 1 Outperform ratings against 14 Hold ratings.
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