Earnings Revving at AutoZone
AutoZone's
(AZO) - Get Report
second-quarter earnings shot up 30% from a year ago as major shareholder Eddie Lampert's profit preoccupation juiced up a 3.9% rise in sales and flat comps.
The company earned $119.5 million, or $1.48 a share, in the quarter, compared with $91.7 million, or $1.04 a share, last year. The latest quarter included a tax-related gain, before which earnings were $1.29 a share. Sales were $1.20 billion in the quarter compared with $1.16 billion a year ago.
Analysts had been forecasting earnings of $1.19 a share before items.
AutoZone's return on invested capital was 25.4% in the trailing four quarters compared with 24.5% a year earlier. Operating expenses as a percentage of sales were 32.7% in the most recent year compared with 34.1% last year.
"Business strengthened considerably this quarter versus the past two quarters as gas prices fell from highs last year," the company said. AutoZone expects to open about 200 stores in fiscal-year 2005, including 10 in Puerto Rico by fall of 2005.
The stock rose $1.24, or 1.3%, to $98.14 in premarket trading.