AutoZone Beats Profit Expectations And Boosts Buybacks, But Sales Fall Shy

AutoZone Inc. reported Thursday earnings that rose to $426.8 million, or $14.30 a share, in its fiscal fourth quarter to Aug. 27, from $401.1 million, or $12.75 a share, in the same period a year ago. The FactSet consensus for earnings per share was $14.25. Revenue increased to $3.40 billion from $3.29 billion, missing the FactSet consensus of $3.42, as domestic same-store sales grew 1.0%. The FactSet same-store sales consensus was 2.0%. Inventory increased 6.1%, as 71 new stores were opened and product placement increased. Separately, the auto parts retailer increased its stock repurchase program by $750 million. The stock, was indicated slightly higher in premarket trade, has tacked on 1.3% year to date through Wednesday, while the S&P 500 has gained 5.8%.