LONDON, UK / ACCESSWIRE / April 10, 2018 / Active-Investors.com has just released a free earnings report on AutoZone, Inc. (NYSE: AZO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AZO. AutoZone, Inc. (NYSE: AZO) reported its second quarter fiscal 2018 operating and financial results on February 27, 2018. The auto parts retailer exceeded revenue expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AutoZone most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended February 10, 2018, AutoZone reported net sales of $2.41 billion, reflecting an increase of 5.4% from net sales of $2.29 billion in Q2 FY17. The Company's Domestic (US) same store sales, or sales for stores open at least one year, increased 2.2% for the reported quarter. AutoZone's reported numbers beat analysts' estimates of $2.39 billion.

During Q2 FY18, AutoZone's gross profit as a percentage of sales was 52.9% versus 52.7% for Q2 FY17. The increase in gross margin was attributable to lower distribution costs and higher merchandise margins. The Company's operating expenses as a percentage of sales were 44.4% for the reported quarter versus 35.9% in the prior year's same quarter, and included impairment charges of approximately $193.2 million, or 8.0% of sales. Operating expenses before impairment charges, as a percentage of sales, were higher than last year primarily due to incentive compensation, higher advertising, and deleverage on occupancy costs.

AutoZone reported net income of $289.5 million, or $10.38 per diluted share, for Q2 FY18 compared to $237.1 million, or $8.08 per diluted share, in Q2 FY17. The Tax Cuts and Jobs Act of 2017 (Tax Reform) increased net income by $171.4 million for the reported quarter and consisted of benefits from both revaluation of net deferred taxes of $136.7 million and a lower corporate tax rate of $59.5 million, partially offset by $24.8 million of tax expense related to repatriation taxes for accumulated earnings of foreign subsidiaries. The Company also recorded approximately $193.2 million in intangible and other assets impairment charges within operating expenses related to its IMC and AutoAnything businesses.

Adjusted for impairment charges, Tax Reform, excess tax benefits from option exercises and operating results from IMC and AutoAnything, AutoZone's adjusted net income rose 9.3% to $8.47 per share in Q2 FY18 from $7.75 per diluted share in the year ago corresponding quarter. The Company's earnings fell short of Wall Street's estimates of $8.79 per share.

Financial Position

During Q2 FY18, under its share repurchase program, AutoZone repurchased 227 thousand shares of its common stock for $174.9 million at an average price of $769 per share. At the end of the reported quarter, the Company had $296 million remaining under its current share repurchase authorization.

During Q2 FY18, AutoZone's inventory increased 4.7% on a y-o-y basis, driven by new stores and increased product placement. The Company's inventory per location was $671,000 versus $665,000 in the year ago same period, and $663,000 in the previous quarter. AutoZone's net inventory, defined as merchandise inventories less accounts payable, on a per location basis, was a negative $46,000 in Q2 FY18 versus negative $36,000 in Q2 FY17, and negative $52,000 in Q1 FY18.

Store Update

During Q2 FY18, AutoZone opened 35 new stores and closed one store in the US; opened 3 new stores in Mexico; and opened 2 new stores in Brazil. As of February 10, 2018, the Company had 5,514 stores in 50 states in the US, the District of Columbia, and Puerto Rico; 532 stores in Mexico; 26 IMC branches; and 16 stores in Brazil for a total count of 6,088.

Stock Performance Snapshot

April 09, 2018 - At Monday's closing bell, AutoZone's stock marginally fell 0.85%, ending the trading session at $615.10.

Volume traded for the day: 352.58 thousand shares.

Stock performance in the previous six-month period ? up 2.55%

After yesterday's close, AutoZone's market cap was at $17.28 billion.

Price to Earnings (P/E) ratio was at 14.24.

The stock is part of the Services sector, categorized under the Auto Parts Stores industry. This sector was flat at the end of the session.

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