AutoZone (AZO) Tops Q2 Views on Strong Comps, Wider Margins
Sales moved up 8.6 percent from $1.66 billion reported during the same quarter last year to $1.80 billion. Net income shuffled 12.8 percent higher to $166.93 million, or $4.15 per diluted share.
The Street was looking for sales of $1.78 billion and EPS of $4.04.
Domestic comps increased 5.9 percent through the period.
Gross margins improved from 50.9 percent during last year's second quarter to 51.3 percent, which AutoZone attributed to lower shrink expense.
Through the quarter, AutoZone opened up 29 new U.S. stores and 6 in Mexico, bringing totals to 4,580 U.S. stores and 287 Mexico locations.
"This marks the thirteenth consecutive quarter of 20 percent plus growth in earnings per share and our twenty second consecutive quarter of double digit growth," commented CEO Bill Rhodes. "We continued our focus on improving parts coverage; hiring, retaining, and training the best automotive parts professionals; and growing our Commercial business...[a]dditionally, our return on invested capital on a trailing four-quarter basis reached another new all-time high at 32.2 percent."
Shares are 2.3 percent better on the session.