(Adds analyst comments paragraphs 5, 7-8, other details, changes dateline from MEMPHIS, Tenn., adds byline)
By Susan Kelly
CHICAGO, Sept 25 (Reuters) - AutoZone Inc. , the largest U.S. automotive parts retailer, on Wednesday posted sharply higher quarterly earnings as more Americans performed repairs on their aging cars in a soft economy.
AutoZone, which sells parts and accessories through more than 3,000 stores in the United States and Mexico, said net income in the fiscal fourth quarter ended Aug. 31 rose to $178 million, or $1.73 a share, from $26.5 million, or 24 cents a share, in the same period a year ago.
The results were well above the average analyst estimate of $1.41 a share, according to Thomson First Call. Estimates had ranged from $1.30 to $1.50 a share.
Before restructuring and impairment charges, the company earned $1.07 a share in the fourth quarter last year.
"It's a fairly significant upside surprise," said Bret Jordan, analyst at Advest Inc.
Shares of AutoZone rose 4.7 percent to $76.50 on the New York Stock Exchange early Wednesday. The shares have traded between $44.89 and $84.50 in the past year.
Jordan said AutoZone is benefiting from the soft economy as well as the decade-long boom in U.S. auto sales.
"Consumers who previously would have hired a mechanic are doing the work themselves," Jordan said.
Memphis, Tennessee-based AutoZone said fourth-quarter sales rose 12 percent to $1.84 billion. Sales at stores open at least one year grew 6.6 percent.
Helping drive sales growth was the rising number of aging vehicles on the road, especially light trucks and sport utility vehicles, which tend to require more maintenance than passenger cars.
While Americans continue to buy new vehicles at a fast pace, they are hanging onto their older cars and trucks longer, boosting the number of vehicles per household. American drivers are also putting more miles on their cars each year, increasing maintenance needs.
During the quarter, AutoZone opened 30 new auto parts stores in the United States, replaced three and closed 14. For the year, AutoZone opened 102 new U.S. auto parts stores, replaced 15 and closed 53 for an end-of-year count of 3,068.
In addition, 12 new auto parts stores were opened in Mexico in the fourth quarter, for a total of 18 new stores in that country for the year. The company now has a total of 39 stores in Mexico.
During the quarter, the company's board authorized a $300 million increase in the share repurchase program, boosting the repurchase program to a total of $2.3 billion. By quarter's end, AutoZone had repurchased 61.9 million shares, at a cost of $2.09 billion.