O'Reilly Automotive Q3 Report

SPRINGFIELD, Mo. – O'Reilly (NASDAQ: ORLY) Automotive, Inc. reported third-quarter earnings and revenue that fell short of analyst expectations, causing shares to drop 3% in after-hours trading on Wednesday.

The auto parts retailer posted adjusted earnings per share of $11.41, missing the consensus estimate of $11.54. Revenue came in at $4.36 billion, below analysts' projections of $4.43 billion. While revenue increased 4% YoY, comparable store sales growth of 1.5% was weaker than anticipated.

CEO Brad Beckham stated, "Our comparable store sales increased 1.5% in the third quarter, as we faced broad-based consumer pressures and a soft demand environment on both the professional and DIY sides of our business."

The company has tightened its full-year comparable store sales guidance to 2-3% from the previous range of 2-4%. O'Reilly now expects fiscal 2024 earnings per share between $40.60 and $41.10, in comparison to the consensus of $41.15. Full-year revenue is projected at $16.6-16.8 billion, slightly below analysts' $16.75 billion estimate.

Despite the challenging quarter, O'Reilly reported continued market share gains in its professional business. The company opened 47 new stores across its U.S., Mexico, and Canada operations during Q3.

O'Reilly repurchased $541 million worth of its stock in the quarter. Year-to-date, the company has bought back $1.60 billion of shares.

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