AutoZone Bumps Up Share Buyback Authorization By $2B

AutoZone Inc AZO disclosed the share buyback authorization of an additional $2.0 billion shares related to its ongoing share repurchase program. 

Since the program's inception in 1998, the Board of Directors has authorized share repurchases of $35.7 billion.

"AutoZone's continued strong financial performance allows us to grow our business, return meaningful amounts of cash to our shareholders and maintain our investment grade credit ratings." said Jamere Jackson, CFO and Executive Vice President – Finance and Store Development.

Last month, AutoZone reported mixed Q3 FY23 results, with sales of $4.09 billion missing the consensus of $4.12 billion and EPS of $34.12, beating the consensus of $31.42.

In Q3, AutoZone repurchased shares worth $908.2 million, with $843.6 million remaining under the authorization at the end of the quarter.

The automotive replacement parts and accessories company witnessed an operating cash flow of $724.7 million in Q3 2023 and held cash and equivalents of $274.9 million as of May 6, 2023. 

Also Read: Resilient Amid Macro Headwinds: Analyst Elevates AutoZone's Rating, Anticipating Upside

Price Action: AZO shares closed lower by 0.89% at $2,399.42 on Wednesday.