Auto parts retailer AutoZone Inc. (AZO, Financial) reported its performance results for the fourth quarter and full fiscal 2017 before the opening bell on Sept. 19.
The Tennessee-based company posted earnings per share of $15.18, beating estimates of $15.11. Quarterly revenue of $3.51 billion beat expectations of $3.49 billion and grew 3.3% from the year-ago quarter.
The trend in AutoZone’s revenue growth over the past decade is illustrated in the graph below.
Shares climbed 4.7% in premarket trading following the announcement, but fell shortly after the market opened.
Domestic same-store sales increased 1% during the quarter, which was shy of the anticipated 1.6% growth. AutoZone Chairman, President and CEO Bill Rhodes said that while same-store sales recovered from the previous two quarters, the modest increase in the fourth quarter was below the company’s recent historical growth due to “continuing headwinds resulting from two consecutive mild winters.”
For the year, the company reported $10.9 billion in revenue, a 2.4% increase from the prior year, and EPS grew 8.3% to $44.07. Domestic same-store sales increased 0.5%.
The company also reported its inventory increased 6.9% from the prior-year quarter as a result of opening new stores and increased product placement.
Looking ahead to 2018, Rhodes said the company is “well positioned to grow sales further.”
“In order to continue to meet our customers’ needs across all selling channels, we will continue to prudently invest capital in our product availability initiatives across our businesses,” Rhodes said. “While investing to grow, we will remain committed to our disciplined approach to increasing operating earnings and utilizing our capital effectively.”
Of the seven gurus invested in AutoZone, Manning & Napier Advisors Inc. has the largest holding with 0.36% of outstanding shares. David Carlson (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) established positions in the second quarter.
Disclosure: I do not own any stocks mentioned.
