NEW YORK (TheStreet) -- Shares of AutoZone Inc. (AZO) are up 2.06% to $593 in pre-market trade after the second largest U.S. auto parts retailer posted a higher-than-expected quarterly profit, helped by lower gas prices and colder-than-usual weather that encouraged customers to ready their cars for a harsh winter, Reuters reports.
Net income climbed to $238.3 million, or $7.27 per share, in the first quarter ended November 22, from $218.1 million, or $6.29 per share, a year ago. Revenue jumped 8% to $2.26 billion.
Analysts on average had expected earnings of $7.16 per share and revenue of $2.21 billion, according to Thomson Reuters I/B/E/S.
Separately, TheStreet Ratings team rates AUTOZONE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTOZONE INC (AZO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: AZO Ratings Report