AutoZone, Inc. (AZO - Free Report) is one of the nation’s leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (“DIY”) retail, Do-It-for-Me (“DIFM”) commercial and other customer markets. The company is focused on increasing sales through store expansion and boosting earnings per share via an aggressive share repurchase program.

However, AutoZone has been facing challenges in terms higher expenses related to opening new distribution centers and increasing the frequency of delivery to stores.

Estimate Trend & Surprise History

Investors should note that the second quarter (ended Feb 11, 2017) of fiscal 2017 earnings estimates for AutoZone have been going down over the past week and month.

Meanwhile, the company delivered positive earnings surprises in two of the trailing four quarters, and meet expectations in two, with an average beat of around 0.76%. Investors have been eagerly awaiting AutoZone’s latest earnings report to see whether it delivers an earnings beat in the second quarter.

Earnings

AutoZone reported earnings of $8.08 per share in the second quarter of fiscal 2017, missing the Zacks Consensus Estimate of $8.20. However, earnings were 8.8% higher than $7.43 per share generated in the year-ago quarter.

AutoZone, Inc. Price and EPS Surprise

AutoZone, Inc. Price and EPS Surprise | AutoZone, Inc. Quote

Revenues

AutoZone logged revenues of $2.29 billion, also missing the Zacks Consensus Estimate of $2.35 billion. However, revenues were 1.4% higher than a year-ago.

Key Stats/Developments to Note

In the second quarter of fiscal 2017, AutoZone repurchased 256,000 shares for $198 million, reflecting an average price of $773 per share. The company had shares worth $585 million remaining for repurchase at the end of the quarter.

Zacks Rank

AutoZone currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Market Reaction

AutoZone’s shares were inactive in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.