O REILLY AUTOMOTIVE INC Quarterly Report for Q3 Ended Sep 30, 2015

Summary

O'Reilly Automotive, Inc. (ORLY) reported strong financial results for the nine months ended September 30, 2015, driven by robust sales growth and improved profitability. Total sales increased by 10% to $6.02 billion, with comparable store sales showing a healthy 7.4% increase. This growth was fueled by an increase in both average ticket values and customer transaction counts, benefiting from favorable macroeconomic conditions such as lower gas prices and decreasing unemployment, which led to more miles driven. The company demonstrated improved operational efficiency, with gross profit margin increasing to 52.1% of sales and operating income rising by 19% to $1.15 billion. Net income saw a significant jump of 19% to $713 million, translating to a diluted earnings per share of $6.98, up 25% year-over-year. O'Reilly continues its expansion strategy, opening 160 net new stores during the period, bringing the total store count to 4,523. The company also actively returned capital to shareholders through share repurchases, investing $849 million in buybacks during the first nine months of the year.

Key Highlights

• 1Total sales for the first nine months of 2015 increased by 10% to $6.02 billion.
• 2Comparable store sales grew by 7.4% for the same period, indicating strong performance in existing locations.
• 3Gross profit margin improved to 52.1% of sales, up from 51.3% in the prior year period, driven by acquisition cost improvements.
• 4Operating income increased by 19% to $1.15 billion, reflecting effective cost management and sales growth.
• 5Net income grew by 19% to $713 million, with diluted EPS up 25% to $6.98.
• 6The company continued its growth strategy by opening 160 net new stores, reaching a total of 4,523 stores.
• 7O'Reilly repurchased $849 million of its common stock during the nine-month period, demonstrating commitment to shareholder returns.

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