AutoZone, Inc.(NYSE: AZO) for the first quarter FY 17 has reported a 7.8% growth in the net income to $278.13 million and the diluted earnings per share has grown 13.0% to $9.36 per share from $8.29 per share in the year-ago quarter. AZO has beaten the earnings estimates by the analysts of earnings per share of $9.31 in the first quarter FY 17

AutoZone has reported 3.4% growth in the net sales to $2.47 billion for its first quarter FY 17 and the domestic same store sales, grew 1.6% for the quarter. The net sales missed the analysts’ expectation of $2.49 billion and the same stores growth were slightly below consensus’ estimates of 1.8 percent.

In the first quarter of FY 17, AutoZone has opened 16 new stores and relocated two stores in the U.S., and opened five new stores in Mexico.  As of November 19th, 2016, AutoZone had 5,313 stores in 50 states in the U.S., the District of Columbia and Puerto Rico, 488 stores in Mexico, 26 IMC branches, and eight stores in Brazil for a total count of 5,835. Moreover, AZO has opened in 21 new locations and 35 Commercial programs. AutoZone has opened the second distribution center in Mexico, and are in the process of building the two new domestic distribution centers.

In the Q1 FY 17, AutoZone gross margin has improved to 52.7% compared to 52.5% for the same period FY 16 due to the lower acquisition costs, which was partially offset by higher supply chain costs associated with the FY 17 inventory initiatives.

AZO’s inventory has increased 7.3% over the same period FY 16, due to the new stores and increased product placement. AZO will continue with the rollout of the inventory availability initiatives, including expanding of the multi-deliveries per week to 161 net additional stores.  Additionally, AZO will continue with the deliberately-paced multiple delivery rollouts in 2017, and open more Mega Hub locations.

AZO has repurchased 478 thousand shares of its common stock for $363 million in the first quarter FY 17, at an average price of $759 per share under the share purchase plan.  At the end of the first quarter, AZO had $783 million remaining under its current share repurchase authorization.

AutoZone stock has risen 6.6% in the last four weeks (as of December 6th, 2016; Source: Google Finance). According to tipranks.com, 13 analysts has covered the stock while recommend a “Strong Buy”. AZO has an average price target of $862.08, which is a further upside of 10.55%.