Shares of AutoZone (AZO) were rising in premarket trading Tuesday after the autoparts retailer beat earnings handily.
The stock was up 5.24% to $935 prior to the open of the U.S. stock market.
Earnings per share for the company's fiscal second quarter were $10.38 a share, flat with a year earlier, but beat analysts' expectations of $9.95. Net income was $294.6 million. Revenue rose 1% from a year earlier to $2.48 billion, beating Wall Street expectations of $2.45 billion. Same-store-sales increased 2.6%.
"Every year, our second quarter's financial results are challenging as it is our seasonally lowest sales quarter and weather impacts can drive significant variability in sales," said Bill Rhodes, chairman, president and CEO. "Our industry fundamentals remain strong, and we continue to be excited about the initiatives we have under way to further enhance our inventory availability, to continue to accelerate commercial and to meet our customers how, when and where they want to be met with our omni-channel efforts."
AutoZone also added 20 new stores in the U.S., one in Mexico and one in Brazil in the quarter. Inventory, as a result, increased 5.4%.
The stock has gained 21% in the past year.