O'Reilly Boosts Share Repurchase - Analyst Blog
15 Novembro 2012 - 8:50AM
Zacks
O’Reilly Automotive Inc. (ORLY) revealed that
its board of directors has approved a resolution that will enhance
the authorization amount under its existing share repurchase
program by $500 million, effective for a three-year period which
began on November 12. With this, the aggregate authorization amount
under the program has been increased to $3.0 billion.
Since the inception of the share repurchase program in January 2011
until October 25, O’Reilly has repurchased 30.1 million shares at
an average price of $74.45, implying a total investment of $2.24
billion. During the third quarter of the year, the company has
repurchased 6.4 million shares of its common stock at an average
price of $84.76, implying a total investment of $539.0 million.
Subsequent to the end of the third quarter until October 25, the
company has repurchased an additional 1.5 million shares for an
average price of $83.49, implying a total investment of $128.0
million.
During the first nine months of the year, the company has
repurchased 12.6 million shares at an average price of $89.62,
leading to a total investment of $1.13 billion.
O’Reilly Automotive, a Zacks #2 Rank (Buy) stock, saw a 20%
increase in earnings per share to $1.32 in the third quarter of
2012 from $1.10 in the same period last year. Quarterly earnings
also surpassed the Zacks Consensus Estimate by 5 cents per share.
Net income increased 7.3% to $159.3 million (9.9% of sales) from
$148.4 million (9.7%) in the third quarter of 2011.
Revenues in the quarter rose 4.3% to $1.60 billion from $1.54
billion a year ago, marginally missing the Zacks Consensus Estimate
of $1.62 billion. Comparable store sales (change in sales for
stores open at least one year) stood at 1.3% compared with 4.8% in
the third quarter of 2011.
Operating income improved 9.2% to $263.3 million from $241.0
million a year ago, while operating margin improved to 16.4% from
15.7% in the third quarter of 2011.
For the fourth quarter of the year, O’Reilly expects earnings per
share of $1.03 to $1.07 and consolidated comparable store sales to
increase in the range of 2% to 4%.
For full year 2012, the company anticipates earnings per share in
the range of $4.64 to $4.68, up from the previous guidance of $4.56
to $4.66. It expects lower consolidated comparable store sales of
3%-4% compared with the prior guidance of 3%-5%.
O'Reilly lowered its revenue guidance to $6.15 billion–$6.20
billion from $6.15 billion–$6.25 billion. The company expects gross
margin between 49.8% and 50.0% and operating margin between 15.5%
and 15.8% for the year.
O'Reilly Automotive is the third largest specialty retailer of
automotive aftermarket parts, tools, supplies, equipment, and
accessories in the U.S., selling products to both Do-it-Yourself
(DIY) customers and Do-it-for-Me (DIFM) or professional
installers.
The company sells an extensive line of products consisting of new
and remanufactured automotive hard parts (such as mufflers, brakes,
and shock absorbers), maintenance items, accessories, a complete
range of auto body paint and related materials, automotive tools
and professional service equipment. Its main competitors are
Advance Auto Parts Inc. (AAP) and AutoZone
Inc. (AZO).
ADVANCE AUTO PT (AAP): Free Stock Analysis Report
AUTOZONE INC (AZO): Free Stock Analysis Report
O REILLY AUTO (ORLY): Free Stock Analysis Report
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