Summary
AutoZone Inc. (AZO) reported its third-quarter results for the period ending November 23, 2013, demonstrating solid top-line growth and improved profitability. Net sales increased by 5.1% year-over-year to $2.09 billion, driven by new store openings, expansion of commercial programs, and contributions from AutoAnything. Domestic same-store sales also saw a modest increase of 0.9%. The company reported a significant 16.2% increase in diluted earnings per share (EPS) to $6.29, up from $5.41 in the prior year's comparable period. This earnings growth was supported by an increase in gross profit margin to 51.9% and improved operating efficiency, with operating expenses as a percentage of sales slightly decreasing. Despite an increase in average borrowings, net interest expense saw only a marginal rise due to lower borrowing rates. AutoZone's strong operating cash flow generation of $357.3 million underscores its robust financial health.
Financial Highlights
48 data points| Revenue | $2.09B |
| Cost of Revenue | $1.01B |
| Gross Profit | $1.09B |
| SG&A Expenses | $701.97M |
| Operating Income | $383.73M |
| Net Income | $218.09M |
| EPS (Basic) | $6.39 |
| EPS (Diluted) | $6.29 |
| Shares Outstanding (Basic) | 34.11M |
| Shares Outstanding (Diluted) | 34.68M |
Key Highlights
- 1Net sales increased 5.1% to $2.09 billion, driven by new stores and commercial program growth.
- 2Diluted Earnings Per Share (EPS) rose significantly by 16.2% to $6.29.
- 3Gross profit margin improved slightly to 51.9% due to lower acquisition costs.
- 4Operating expenses as a percentage of sales decreased to 33.5%, reflecting improved efficiency.
- 5Operating cash flow remained strong, generating $357.3 million.
- 6The company continued its aggressive share repurchase program, buying back $291.5 million in common stock during the quarter.
- 7The Board of Directors increased the share repurchase authorization by $750 million, indicating continued commitment to returning capital to shareholders.