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VIDEOSilver Lining: Autozone in Good Repair
Company launches stock buyback.
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Enter auto-parts retailer Autozone (AZO).
If the Memphis-based company’s second-quarter results are any indicator, it appears that you’ve been spending a fair amount of time in your garage, souping up the old rig.
Autozone earned $2.03 a share in the period ended February 14. And frankly, that’s a head-turner, because the estimate I’m seeing is for $1.84 a share.To boot, its sales line came in at about $1.45 billion, which was north of expectations.
There were some other tidbits in the release that stuck out to me as well. For one, its domestic same-store numbers were up 6%. Darn impressive in this environment, if you ask me. Just as an FYI, Advance Auto (AAP) turned in a 3% comp store improvement in its fourth quarter.
Also, Autozone plunked down $375 million to buy back stock during the quarter. That's certainly not chump change, and I think it signals that its board thought the shares were a good value. And the average price it bought the shares at: $133. That’s clearly toward the upper-end of its 52-week trading range.
Heck, I’d like to see more companies buying back shares these days.
Overall, I'm having trouble finding fault with these numbers, and I think the shares will close in the green today. I should also add that I believe Advance Auto -- and even Pep Boys (PBY) -- could get a goose and close in the green today, thanks to these results.
Good news is just nice, isn’t it?
Hey, have a great day - and think positive!
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