O'Reilly Automotive Inc.'s (ORLY) board added $500 million to
the auto-parts retailer's stock-repurchase program, doubling the
total authorized so far this year.
Chief Financial Officer Tom McFall said the move was enacted to
"enhance shareholder value and driven by our strong free cash
flow." O'Reilly joined a number of firms that enacted or boosted
stock-repurchase plans to appeal to investors.
In January, O'Reilly had authorized a repurchase program of $500
million. Since its inception, McFall said O'Reilly has repurchased
over 7 million shares for a total investment of over $400
million.
The additional authorization is effective for a three-year
period, beginning Aug. 5. O'Reilly, which has about 140 million
shares outstanding, has a market capitalization of roughly $8.2
billion.
Last month, the company reported its second-quarter earnings
rose 34% on record-high operating margin, as the company raised its
outlook for earnings this year again.
Shares rose a penny to $58.36 after hours.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com