Autozone, Inc.

Autozone, Inc. (AZO - Analyst Report) is one of a number of auto-parts retailers that has done well in the challenging economy. Estimates are up and the company's share price has been trending higher since November of last year.

Company Description

Autozone, Inc. is a specialty retailer and distributor of automotive replacement parts and accessories. The company operates more than 4,250 stores primarily in the Unites States and has a market cap of $8.41 billion.

With the economy stuck in a rut and consumers struggling under financial pressure, car sales have fallen sharply. This has been a boon for the retail auto-parts industry, which has thrived as owners upgrade existing models instead of buying new. This dynamic helped Autozone produce solid third-quarter results, reported on May 27.

Third-Quarter Results

Sales were up 9% from last year to $1.66 billion. Earnings came in at $173.7 million, up from $158.6 million last year, producing earnings of $3.13 per share.

CEO Speak

Autozone CEO Bill Rhodes underscored this trend, saying that, "The current economic environment, combined with the reduction in fuel prices compared to last year, has clearly been beneficial to our industry's performance."

Estimates Climb

Estimates have nudged higher since the good quarter, with the current-year estimate up 40 cents to $11.70. The next-year estimate is pegged at $13.13, a 12% growth projection.

The Chart

Shares of AZO have rebounded nicely over the last 7 months after dipping lower with the overall market in 2008. Take a look at the nice move below.