Share price of
) nudged up roughly 0.2% on Jun 19 after the company's board of
directors authorized an added buyback of up to $750 million shares
under its current share repurchase program. The strong financial
performance of the company has enabled it to continue with its
share repurchase strategy while maintaining its investment grade
The share repurchase authorization indicates AutoZone's strong
liquidity position. The company had cash and cash equivalents of
$145.3 million as of May 10, 2014.
AutoZone has been undertaking such share repurchase programs since
1988. Including this new repurchase program, the company has
authorized a total of $14.9 billion for buying back shares.
AutoZone remains focused on enhancing shareholders' returns, while
simultaneously maintaining adequate liquidity for its business
AutoZone is aggressively repurchasing its shares. During the third
quarter of fiscal 2014, AutoZone repurchased 795,000 shares for
$420 million, reflecting an average price of $529 per share. Year
to date, the company has repurchased 1.877 million shares for $912
million, at an average price of $486 per share.
Previously, in Dec 2013, AutoZone had increased the share
repurchase authorization by $750 million, without compromising its
liquidity position, financial strength and therefore, the credit
AutoZone reported a 16.4% rise in earnings per share to $8.46 for
the third quarter of fiscal 2014 (ended May 10, 2014) from $7.27 in
the year-ago quarter. Earnings were in line with the Zacks
Consensus Estimate of $8.46. Quarterly revenues increased 6.2% year
over year to $2.34 billion, marginally surpassing the Zacks
Consensus Estimate of $2.33 billion.
AutoZone holds a Zacks Rank #3 (Hold). Stocks that warrant a look
Pep Boys - Manny, Moe & Jack
U.S. Auto Parts Network, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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