) reported a 15.2% rise in earnings per share to $4.78 in
second-quarter fiscal 2013 (ended Feb 9, 2013) from $4.15 in the
year-ago quarter. The results surpassed the Zacks Consensus
Estimate by 4 cents. Net income went up 5.6% to $176.2 million
from $166.9 million in the year-ago quarter.
The company's revenues for the quarter increased 2.8% to $1.86
billion, marginally missing the Zacks Consensus Estimate of $1.88
billion. Domestic same-store sales (sales for stores open at
least one year) decreased 1.8% in the quarter.
Gross profit increased 3.9% to $962 million or 51.9% of sales
from $926.2 million or 51.3% in the year-ago quarter. The
year-over-year growth in margins was attributable to reduction in
Operating income climbed 5.6% to $317.6 million from $300.7
million in the second quarter of fiscal 2012. Operating expenses
increased 3% to $644.4 million or 34.7% of sales versus $625.6
million or 34.7% a year ago. The higher operating expenses were
due to lower sales, partially offset by lower incentive
Store Opening and Inventory
AutoZone opened 32 new stores in the U.S, and 9 new stores in
Mexico. As of Feb 9, 2013, the company had 4,735 stores in 49
states, the District of Columbia and Puerto Rico in the U.S., 334
stores in Mexico and one store in Brazil.
The company's inventory grew 7% in the quarter, driven by an
improvement in store count and continued strategic investments in
hard parts assortment. Inventory per store increased a mere 2.6%
to $544,000 from $530,000 in the corresponding quarter of last
During the quarter, AutoZone repurchased 513,000 shares for $185
million, reflecting an average price of $361. The company had
$603 million worth of shares remaining for repurchase at the end
of the second quarter.
AutoZone had cash and cash equivalents of $115.5 million as of
Feb 9, 2013, up from $103.2 million as of Feb 11, 2012. Total
debt amounted to $4 billion as of Feb 9, 2013, compared with $3.5
billion as of Feb 11, 2012. The company had a stockholder deficit
of $1.6 billion as of Feb 9, 2012, up from $1.3 billion as Feb
During the first six months of fiscal 2013, the company generated
net cash flow of $285.3 million before share repurchases and
changes in debt compared with $374.2 million in the same period a
year ago. Capital spending increased to $169.6 million from
$132.4 million in the first half of fiscal 2012.
AutoZone is a leading retailer and distributor of automotive
replacement parts and accessories with stores located in the U.S.
and Mexico. The company is focused on aggressive share repurchase
program along with expansion of hub stores. The company currently
retains a Zacks Rank #3 (Hold).
Advance Auto Parts Inc.
), another leading retailer and distributor of automotive
replacement parts and accessories, posted a 2.2% decrease in
earnings per share to 88 cents in the fourth quarter of 2012 from
90 cents in the year-ago quarter. However, it surpassed the Zacks
Consensus Estimate by 13 cents. Revenues remained flat year over
year at $1.3 billion, in line with the Zacks Consensus Estimate.
Few stocks that are also performing well in the industry where
AutoZone operates are
O'Reilly Automotive Inc.
). Both carry a Zacks Rank #2 (Buy).
ADVANCE AUTO PT (AAP): Free Stock Analysis
AUTOZONE INC (AZO): Free Stock Analysis
CARMAX GP (CC) (KMX): Free Stock Analysis
O REILLY AUTO (ORLY): Free Stock Analysis
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