AutoZone Profit Beats Estimates Due To Higher Repairs


AutoZone Inc, the largest U.S. auto parts retailer, reported a better-than-expected 7 percent rise in quarterly profit as demand for repairs improves.

A warmer-than-usual winter in 2012 resulted in less wear and tear on vehicles, leading to fewer repairs.

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AutoZone's performance has been weaker than some of its rivals due to its larger exposure to the do-it-yourself market, which has not recovered as fast as commercial repair. The company does not get any revenue from auto repair services.

Sales at stores open for at least a year rose 0.9 percent. Memphis, Tennessee-based AutoZone had more than 4,800 stores in the United States as at Aug. 31.

Rival O'Reilly Automotive Inc reported a 4.6 percent rise in third-quarter same-store sales in October.

AutoZone's net income rose to $218.1 million, or $6.29 per share, in the first quarter ended Nov. 23, from $203.5 million, or $5.41 per share, a year earlier.

Revenue rose 5 percent to $2.09 billion.

Analysts on average expected first-quarter earnings of $6.28 per share on revenue of $2.10 billion, according to Thomson Reuters I/B/E/S.

AutoZone's shares closed at $457.34 on the New York Stock Exchange on Monday. They have risen almost a third in the past 12 months, outperforming the S&P 500 index.