DOW JONES NEWSWIRES
O'Reilly Automotive Inc.'s (ORLY) third-quarter profit climbed
34% on improved sales and margins as same-store sales jumped 11.1%,
more than expected.
The auto-parts retailer's results exceeded expectations, but
shares slid 0.7% to $54 in after-hours trading as it predicted
earnings for the current quarter of 56 cents to 60 cents, while
analysts on average estimated 61 cents, according to a poll by
Thomson Reuters. The stock, which reached its all-time high Monday,
was up 43% this year as of the close on the company's improved
performance.
O'Reilly also raised its 2010 guidance to a range of $2.79 to
$2.83, after cutting it by a penny in July to a range of $2.64 to
$2.74.
Co-President and Chief Executive Greg Henslee said sales were
boosted by warmer weather conditions in most of O'Reilly's markets
and "ongoing strong demand for our products."
O'Reilly's bottom line has improved consistently during the past
year and a half as more people have kept their vehicles longer amid
the recession and high unemployment. Last month, rival Pep
Boys-Manny Moe & Jack's (PBY) reported its fiscal
second-quarter profit climbed 37% on higher sales.
For the latest quarter, O'Reilly reported a profit of $116.5
million, or 82 cents a share, up from $87.2 million, or 63 cents a
share, a year earlier. Excluding items such a $5.9 million charge
related to a Department of Justice probe of CSK Auto Corp. before
O'Reilly bought that company, earnings rose to 86 cents from 63
cents. In July, O'Reilly predicted 69 cents to 73 cents, generally
below analysts' then-estimate.
Revenue grew 13% to $1.43 billion. Analysts estimated $1.36
billion.
Gross margin rose to 48.6% from 48.5%.
During the quarter, O'Reilly opened 48 stores and is on track to
meet its goal of opening 150 this year. Next year, the company aims
to open 170.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com