By Shawn Langlois
SAN FRANCISCO (Dow Jones) -- AutoZone Inc. shares rallied
Tuesday, rising as much as 12% as the auto-parts retailer
capitalized on the recession-inspired trend of motorists repairing
their vehicles instead of buying ones.
In morning action, the shares reached $157.49 on an intraday
basis, a new 52-week high, and are now up more than 33% in the past
year -- in contrast to one of the worst-ever periods for the
broader automotive sector.
Sales of new cars and trucks have plunged toward levels not seen
in nearly three decades, and automakers' results for February
promise little thaw on this front.
Companies that provide parts to keep vehicles running longer
have benefited from this trend. Memphis-based AutoZone (AZO) is the
nation's biggest retailer of parts.
The company said profit for the second quarter ended Feb. 14
rose to $115.9 million, or $2.03 a share, up from $106.7 million,
or $1.67 a share, earned in the year-earlier period.
Quarterly revenue increased 8% to $1.45 billion from the prior
year's $1.34 billion.
Analysts polled by FactSet Research had been looking for
earnings, on average, of $1.84 a share on sales of $1.4
billion.
Domestic same-store sales, a measurement for sales at stores
open at least one year, grew 6% for the most recent quarter.
"During these challenging economic times, we believe our
merchandise and service offerings provide a compelling shopping
experience for both our do-it-yourself and professional customers,"
said Bill Rhodes, chairman and chief executive, in a statement.