Summary
O'Reilly Automotive, Inc. (ORLY) reported strong financial results for the first quarter ended March 31, 2016. Sales increased by 10% year-over-year to $2.1 billion, driven by a 6.1% increase in comparable store sales and the addition of 52 net new stores. Net income saw a significant 20% increase to $255.4 million, with diluted earnings per share rising to $2.59 from $2.06 in the prior year's period. The company demonstrated robust operational efficiency, with gross profit margin improving to 52.4% and operating income growing by 19% to $419 million. This strong performance was supported by effective cost management, leading to a decrease in SG&A as a percentage of sales to 32.4%. The company also generated substantial cash flow from operations ($488.2 million) and continued its aggressive share repurchase program, investing $312.6 million in the quarter.
Financial Highlights
44 data points| Revenue | $2.10B |
| Cost of Revenue | $998.57M |
| Gross Profit | $1.10B |
| SG&A Expenses | $678.95M |
| Operating Income | $418.63M |
| Interest Expense | $14.82M |
| Net Income | $255.37M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 1.46B |
| Shares Outstanding (Diluted) | 1.48B |
Key Highlights
- 1Sales grew 10% to $2.1 billion, exceeding the prior year's $1.9 billion.
- 2Comparable store sales increased by 6.1%, indicating healthy growth in existing locations.
- 3Net income surged 20% to $255.4 million, with diluted EPS growing to $2.59.
- 4Gross profit margin improved to 52.4% from 51.9% in the prior year.
- 5Operating income rose 19% to $419 million, demonstrating strong operational leverage.
- 6The company repurchased $312.6 million of its common stock during the quarter, reflecting confidence and a commitment to shareholder returns.
- 7Cash flow from operations was robust at $488.2 million, supporting liquidity and investment.