AutoZone’s stock surges after big profit, same-store sales beats

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Shares of AutoZone Inc. surged 4.0% in premarket trading Tuesday, after the auto parts retailer reported fiscal fourth-quarter profit and sales that rose well above expectations. Net income for the quarter to Aug. 29 rose to $740.5 million, or $30.93 a share, from $565.2 million, or $22.59 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $30.93 from $20.95, above the FactSet consensus of $25.15. Net sales increased 14.0% to $4.55 billion, beating the FactSet consensus of $4.16 billion. Domestic same-store sales grew 21.8%, above expectations of 11%. The company said same-store sales growth was “very consistent,” generally increasing by 21% to 27% per week, but during the last four weeks of the quarter, sales growth fell to 16.5% as enhanced unemployment benefits expired. The company said it did not repurchase any shares during the quarter given the uncertainties caused by the COVID-19 pandemic. The stock has slipped 0.4% year to date through Monday, while the S&P 500 has gained 1.6%.
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