O'Reilly Automotive Inc. (ORLY) second-quarter earnings rose 16%
and beat guidance after adjusting for charge, as the auto-parts
retailer increased sales more than expected.
But company predicted earnings in the current quarter of 69
cents to 73 cents, mostly below the average estimate for 72 cents
from a survey of analysts by Thomson Reuters.
It also reduced its 2010 guidance for earnings by a penny to a
range of $2.64 to $2.74 from April's forecast.
The company's bottom line has improved consistently through over
the last year and a half as the recession and high unemployment
encourage drivers to hold onto their cars longer. Last month, rival
Pep Boys-Manny Moe & Jack's (PBY) reported a 9.5% higher
quarterly profit as customer count and sales grew across all lines
of its business.
O'Reilly posted a profit of $99.6 million, or 71 cents a share,
from $85.5 million, or 62 cents per share, a year earlier. The
latest results included a charge related to the Department of
Justice's investigation into CSK, which O'Reilly acquired in 2008.
Excluding it, earnings were 81 cents. In April, the company
projected 70 cents to 74 cents.
Revenue increased 10% to $1.38 billion. Analysts surveyed by
Thomson Reuters predicted $1.35 billion.
In the most recent period, same-store sales rose 7.9%, better
than O'Reilly's guidance for 4% to 6% growth.
O'Reilly shares were up 0.4% at $49.60 after hours. The stock
has climbed 30% so far this year through the close, better than the
market at large.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com