O’Reilly Automotive shares slip 3% on worse than expected Q3 results

SPRINGFIELD, Mo. – O’Reilly (NASDAQ:ORLY) Automotive, Inc. (NASDAQ:ORLY) reported third-quarter earnings and revenue that fell short of analyst expectations, sending shares down 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.

“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,” said CEO Brad Beckham.

The company 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, compared 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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.