AutoZone (NYSE: AZO) reported earnings of $24.64 in the fiscal second quarter of FY23 versus $22.30 in the same period last year and beating analysts’ consensus estimate of $21.64 per share.
The retailer of aftermarket automotive parts and accessories reported sales of $3.7 billion in Q2, up 9.5% year-over-year and surpassing analysts’ expectations by $130 million. Same-store sales in the U.S. increased by 5.3% in Q2
The company’s inventory increased 13.9% year-over-year in the second quarter driven by inflation with a net inventory of negative $227,000.
During the second quarter, AZO bought back 372,000 shares for $906 million at an average price of $2,434 per share. At the end of Q2, the company still had $1.8 billion remaining under its current stock buyback program.
During the second quarter, AutoZone opened 30 new stores in the U.S., one in Mexico, and five in Brazil.
Wall Street analysts are cautiously optimistic about AZO stock with a Moderate Buy consensus rating based on 12 Buys, three Holds and one Sell.
