AutoZone reports £248 million of net income in fiscal Q2
- AutoZone reports £248 million of net income in the second quarter.
- The American retailer values its sales £2.09 billion in fiscal Q2.
- In the recent quarter, AutoZone opened 27 new stores in the U.S.
AutoZone Inc. (NYSE: AZO) said on Tuesday that its financial performance in the fiscal second quarter was better than expected, despite the ongoing Coronavirus pandemic that continues to weigh on the U.S. retail sector.
AutoZone shares, that you can learn to buy online here, opened just under 2% up on Tuesday. Including the price action, the stock is now trading at £847.56 per share after recovering from a low of £518.47 per share in the last week of March 2020.
AutoZone’s Q2 financial results versus analysts’ estimates
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AutoZone reported £247.97 million of net income in the quarter that concluded on 13th February, that translates to £10.70 per share. In Q2 of last year, it had recorded £214.56 million of net income, or £8.88 per share. In comparison, AutoZone’s net income stood at £332 million in the prior quarter (Q1).
The American retailer said that it generated £2.09 billion of sales in the recent quarter versus the year-ago figure of £1.80 billion. According to FactSet, experts had forecast the company to post £1.98 billion of sales in the second quarter. Their estimate for per-share earnings stood at a lower £9.25.
Chief Executive Bill Rhodes commented on the earnings report on Tuesday and said:
“While our strong (DIY) sales have been aided by government stimulus and changes to consumer behaviour as a result of the pandemic, our growth initiatives continue to deliver strong share gains with both DIY and Commercial customers.”
Commercial sales, as per the Memphis-based company, jumped 15% on a year over year basis in the fiscal second quarter. AutoZone repurchased £645.20 million worth of shares in Q2. By the end of the second quarter, its buyback programme had another £514.44 million available.
AutoZone opened 27 new stores in the United States
AutoZone said that it opened one new store in Brazil in the recent quarter, seven new stores in Mexico, and twenty-seven in the United States. It now has 5,951 stores in total in the U.S., 628 in Mexico, and 46 in Brazil.
In separate news from the United States, Nike’s head of North American business, Ann Hebert, resigned on Tuesday. The athletic apparel and footwear maker said it will name a replacement shortly.
AutoZone remained flat on average in the stock market last year. At the time of writing, it is valued at £19.43 billion and has a price to earnings ratio of 15.60.