AutoZone Inc. (NYSE: AZO) reported its fiscal second-quarter financial results before the markets opened on Tuesday. The auto parts retailer said that it had $10.38 in earnings per share (EPS) and $2.5 billion in revenue, which compared with consensus estimates of $9.96 in EPS on revenue of $2.45 billion. The same period of last year reportedly had EPS of $10.38 and $2.41 billion in revenue.
During the most recent quarter, domestic same-store sales increased 2.6% year over year, while net sales only increased 1.6%.
Gross profit, as a percentage of sales, was 54.1% (versus 52.9% for the same period last year). The increase in gross margin was attributable to the impact of the sale of two businesses completed in the prior year and higher merchandise margins.
AutoZone opened 20 new stores in the United States, one store in Mexico and two stores in Brazil in the quarter. As of February 9, 2019, the chain had 6,241 stores in total.
The company offered no guidance in the report, but consensus estimates call for $14.75 in EPS and $2.77 billion in revenue for the quarter.
Bill Rhodes, board chair, president and chief executive, commented:
Our industry fundamentals remain strong, and we continue to be excited about the initiatives we have underway to further enhance our inventory availability, to continue to accelerate Commercial and to meet our customers how, when and where they want to be met with our omni-channel efforts. As we continue to invest in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and utilizing our balance sheet and capital effectively.
Shares of AutoZone were last seen up 7.1% at $952.94, in a 52-week range of $590.76 to $966.00. The consensus price target is down at $919.59.