AutoZone shares jump 6% premarket after better-than-expected earnings

AutoZone Inc. shares jumped 6% in premarket trade Tuesday, after the car parts retailer posted stronger-than-expected earnings for its fiscal first quarter to Nov. 18. Memphis, Tenn.-based AutoZone said it had net income of $281 million, or $10.00 a share, in the quarter, up from $278 million, or 9.36 a share, in the year-earlier period. Sales rose to $2.6 billion from $2.5 billion and same-store sales rose 2.3%. The FactSet consensus was for EPS of 9.78, sales of $2.5 billion and same-store sales growth of just 0.9%. Chief Executive Bill Rhodes said the after-effects of the hurricanes boosted sales by 50 to 60 basis points, while the damage from the storms shaved about 7 cents off EPS. "We were encouraged with the improvement in performance in our first quarter and are pleased with the progress we are making on our various initiatives," he said in a statement. AutoZone shares have fallen 10% in 2017 through Monday, while the S&P 500 has gained 18%.

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