AutoZone Earnings: Revenues Slightly Lighter Than Expected

S&P 500 (NYSE:SPY) component AutoZone Inc (NYSE:AZO) reported its results for the third quarter. AutoZone is a specialty retailer of automotive replacement parts and accessories, offering an extensive line for cars, sport utility vehicles, vans, and light trucks.

Investing Insights: What’s the Future of Microsoft’s Stock?

AutoZone Inc Earnings Cheat Sheet for the Third Quarter

Results: Net income for AutoZone Inc rose to $228.6 million ($6.28 per share) vs. $227.4 million ($5.29 per share) in the same quarter a year earlier. This marks a rise of 0.5% from the year-earlier quarter.

Revenue: Rose 6.7% to $2.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AutoZone Inc fell in line with the mean analyst estimate of $6.28 per share. Analysts were expecting revenue of $2.13 billion.

Quoting Management: “We are pleased to announce another quarter of strong performance. This quarter marks our twenty third consecutive quarter of double digit growth in earnings per share. We remain committed to executing our 2012 operating theme of “1TEAM; Driving our Future.” We continued our focus on improving parts coverage; hiring, retaining, and training the best automotive parts professionals; and growing our Commercial business. This quarter we opened 121 new Commercial programs. I would like to thank all AutoZoners for their commitment to delivering superior customer service, which we believe remains a competitive advantage. Additionally, our return on invested capital on a trailing four-quarter basis reached another new all-time high at 32.7%. We remain committed to our disciplined approach of growing operating earnings while efficiently utilizing our capital,” said Bill Rhodes, Chairman, President and Chief Executive Officer.

Key Stats:
AutoZone (NYSE:AZO) has now seen net income rise in three straight quarters. In the second quarter, net income rose 12.7% and in the first quarter, the figure rose 11.1%.

Revenue has increased for four quarters in a row. Revenue increased 8.6% to $1.8 billion in the second quarter. The figure rose 7.4% in the first quarter from the year earlier and climbed 8.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company met estimates last quarter after toppling them in the two previous quarters. In the second quarter, it topped the mark by 11 cents, and in the first quarter, it was ahead by 23 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $8.45 per share, up from $8.38 ninety days ago. For the fiscal year, the average estimate has moved up from $23.08 a share to $23.29 over the last ninety days.

Competitors to Watch: Advance Auto Parts, Inc., O’Reilly Automotive, Inc., The Pep Boys – Manny, Moe & Jack, U.S. Auto Parts Network, Inc., General Motors Company, Toyota Motor Corp., Honda Montor Co. Ltd., Ford Motor Company, CarMax, Tesla Motors Inc, Tata Motors Limited, and Navistar Intl. Corp.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Did Apple and Google Poach Facebook’s Mojo?

How Strong is Global Gold Demand?

Will Ford Motor Leave GM and Nissan in Its Dust?