AutoZone (AZO) Stock Closed Down Following Mixed Earnings

NEW YORK (TheStreet) -- Shares of AutoZone Inc  (AZO) finished the regular trading session in the red, slightly lower by 0.11% to $688.43 on Tuesday, after the car parts company reported mixed fiscal third quarter earnings results earlier this morning.

On CNBC's Cramer's Stop Trading segment this morning, TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio said to watch the auto parts company's shares because they could get a boost from the company's consistent buybacks.

Cramer said the company has been "one of the great performers" in the auto service and parts sector.

For the first quarter, the company earned $9.57 per share on revenue of $2.49 billion.

Analysts were expecting a profit of $9.52 per share on revenue of $2.5 billion, according to Thomson Reuters.

In the same quarter of last year, AutoZone reported earnings of $8.46 per share on revenue of $2.34 billion.

The automotive replacement parts retailer reported domestic same-store sales gained 2.3% for the quarter.

Its gross profit, as a percentage of sales, widened to 52.3% from 52% a year ago.

Operating expenses, as a percentage of sales, rose slightly to 31.6% from 31.5%.

Inventory increased 10.7% year-over-year.

"While we have continued to strategically invest in our business in order to support our growth, we remain committed to our disciplined approach to growing operating earnings and utilizing our capital effectively," said AutoZone chairman, president, and CEO Bill Rhodes in a statement.

During the quarter, AutoZone repurchased 763,000 shares for $515 million, which is more compared to what the company bought back in the first half of the year.

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