According to Reuters,
AutoZone Inc.
(
AZO
) has been awarded a 'BBB' rating by Fitch Ratings for the issue of
$500 million 3.7% notes due 2022.The company will utilize the
proceeds from the offering in repaying commercial paper. AutoZone
had total debt of $3.5 billion as of February 11, 2012.
The rating underscores the company's leading position in the
retail auto parts and accessories aftermarket. It also reflects the
company's strong operating performance, credit profile and
aggressive share repurchases.
In March 2012, AutoZone announced the repurchase of $750 million
of the company's common stock in connection with its ongoing share
repurchase program which was initiated in 1998.
During second-quarter 2012, the company repurchased 501,000
shares of its common stock for $173 million, with an average price
of $345. At the end of the quarter, the company had $486 million
remaining under its current share repurchase authorization.
AutoZone is a leading retailer and distributor of automotive
replacement parts and accessories with stores in the U.S. and
Mexico. The company serves the Do-It-Yourself (DIY) retail,
Do-It-for-Me (DIFM) commercial and other customer markets. It
competes with
O'Reilly Automotive Inc.
(
ORLY
) and
Advance Auto Parts Inc.
(
AAP
), both of which have posted an impressive rise in profits in their
earlier reported quarters.
AutoZone recorded earnings of $4.15 per share in the second
quarter ended February 11, 2012, compared with $3.34 in the
corresponding quarter last year. The results surpassed the Zacks
Consensus Estimate by 11 cents. In absolute terms, profits hiked
13% year over year to $166.9 million.
Revenues in the quarter shot up 9% year over year to $1.8
billion, matching the Zacks Consensus Estimate. Domestic same store
sales (sales for stores open at least one year) increased 5.9%
during the quarter.
Currently, we have a long-term Neutral recommendation on
AutoZone. The stock currently retains a Zacks #3 Rank, which
implies a "Hold" rating for the short term.
ADVANCE AUTO PT (
AAP
): Free Stock Analysis Report
AUTOZONE INC (
AZO
): Free Stock Analysis Report
O REILLY AUTO (
ORLY
): Free Stock Analysis Report
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