AutoZone Q4 Results Up, Top Estimates; Sees Further Sales Growth In FY18

(RTTNews) - AutoZone Inc. (AZO), an automotive parts retailer, reported Tuesday that its fourth-quarter net income increased 1.7% to $433.90 million from last year's $426.77 million. Earnings per share grew $15.27 per share from $14.30 in the year-ago quarter.

The Company adopted a new accounting standard on August 28, 2016, related to stock option exercises. Excluding the $0.09 net benefit for the quarter from the adoption of this new standard, adjusted earnings per share were $15.18 per share.

On average, 24 analysts polled by Thomson Reuters expected earnings of $15.11 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales of $3.5 billion increased 3.3% from $3.40 billion last year. Analysts were looking for sales of $3.49 billion.

Domestic same store sales, or sales for stores open at least one year, increased 1.0% for the quarter.

For the quarter, gross profit, as a percentage of sales, was 52.8%, down 2 basis points from the same period last year. The slight decline in gross margin was attributable to higher supply chain costs associated with current year inventory initiatives, partially offset by higher merchandise margins.

As of August 26, 2017, the Company had 5,465 stores in 50 states in the U.S., the District of Columbia and Puerto Rico, 524 stores in Mexico, 26 IMC branches, and 14 stores in Brazil for a total count of 6,029.

Bill Rhodes, Chairman, President and Chief Executive Officer, said, "For the fourth quarter, our same store sales rebounded modestly from the previous two quarters. Our 1.0% same store sales were still moderately below our recent historical experience and we attribute this shortfall primarily to the continuing headwinds resulting from two consecutive mild winters. We believe we are well positioned to grow sales further in 2018."