J.P. Morgan Comments On AutoZone 3Q11 Operating EPS

According to J.P. Morgan, AutoZone AZO reported 3Q11 operating EPS of $5.29 vs. consensus of $4.97 and $4.67E. J.P. Morgan said that total sales increased 8.6% to $1.97B with same-store sales of 5.3% vs. 0.0%E. “Gross margin expansion of 57 bps was slightly ahead of expectations on improved lower shrink expense and higher merchandise margins (private label / lower product acquisition costs). Operating expenses delivered 30 bps on 5.3% comps vs. our 90 bps estimate as SG&A increased 9.4% to $620.6MM vs. our forecast of $599.8MM.” AutoZone closed yesterday at $276.78.