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The second-biggest auto parts retailer in the United States, AutoZone Inc., posted its quarterly profit, higher than the average expectations of analysts. The recent results were helped by lower gas costs as well as the colder weather than usual, encouraging customers to prepare their vehicles for the harsh winter. Company shares jumped 3.3% in the early market trading.
Most auto parts retailers usually benefit towards the year-end because cold weather dwindles car batteries, while thickening engine oil. These factors lead towards greater wear-and-tear effects to other auto parts. Also, tires and brakes weaken faster during cold weather conditions.
On Tuesday, the company said sales were likewise helped by lower gas prices, encouraging customers to drive more. AutoZone also said it had prepared more of its products during the quarter that ended November 22, driving revenues up by 8% to 2.26 billion US dollars.
The company net income jumped 238.3 million US dollars or 7.27 dollars per share during the first quarter, compared to the 218.1 million or 6.29 dollars per share last year.
The average forecast of analysts for AutoZone earnings were at 7.16 dollars per share and 2.21 billion dollars revenue, based on Thomson Reuters.
Shares of the company were trading at 600 dollars before the bell. Up until Monday’s close, company stock rose 22% this year.
