AutoZone says 2Q profit jumped 8.6% on more demand for vehicle parts and supplies

AutoZone says 2Q profit jumped 8.6% on more demand for vehicle parts and supplies

AutoZone Inc. reported a 2nd-Q profit increase of 8.6% Tuesday, as car owners and mechanics increased spending on automotive parts and supplies for used vehicles. Memphis, TN-based AutoZone earned $115.9 million, or $2.03 a share, compared with $106.7 million, or $1.67 per share, in the same quarter a year ago. Sales rose 8.1% to $1.45 billion, while domestic same-store sales -- or sales for stores open at least 1 year -- rose 6%. Results beat analyst expectations. Analysts Thomson Reuters surveyed expected a profit of $1.85 per share on $1.38 billion in sales. In premarket activity, shares of AutoZone climbed $9.27, or 6.6%, to $149.30. The stock's ranged from $84.66 to $148.50 in the past year. The continued steep drop off in U.S. demand for new vehicles has helped auto parts retailers during the quarter, with more drivers choosing to keep their cars longer & spend more on parts needed to maintain them. Companies like AutoZone also got a boost from lower gas prices, which result in more people driving more miles, prompting more spending on maintenance and repairs. The quarter marks the company's 10th consecutive quarter of double-digit growth, according to AutoZone. AutoZone opened 20 new stores in the U.S. and eight in Mexico. It closed 1 store in the U.S. At the end of the quarter ending Feb. 14, AutoZone had 4,141 stores in the U.S and Puerto Rico and 158 stores in Mexico. In February, Advance Auto Parts Inc. & O'Reilly Automotive both reported quarterly results that beat Wall Street's expectations. As part of its ongoing stock buyback plan, AutoZone repurchased 2.8M of its common stock during the quarter for a total of $375 million.