Summary
O'Reilly Automotive, Inc. (ORLY) reported solid first-quarter 2018 results, demonstrating continued growth and operational efficiency. Sales increased by 6% year-over-year, driven by both new store openings and a 3.4% increase in comparable store sales, indicating strong performance across their "dual market strategy" serving both DIY and professional customers. Profitability saw a healthy increase, with Net Income growing by 15% to $305 million. This was supported by an improved gross profit margin (52.6% from 52.5%) and the positive impact of the U.S. Tax Cuts and Jobs Act, which lowered the effective tax rate to 22.9% from 31.2% in the prior year. The company also continued its aggressive share repurchase program, demonstrating a commitment to returning value to shareholders.
Financial Highlights
44 data points| Revenue | $2.28B |
| Cost of Revenue | $1.08B |
| Gross Profit | $1.20B |
| SG&A Expenses | $778.41M |
| Operating Income | $422.85M |
| Interest Expense | $28.22M |
| Net Income | $304.91M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Total sales increased by 6% to $2.28 billion for the first quarter of 2018, compared to $2.16 billion in the same period of 2017.
- 2Comparable store sales grew by 3.4% year-over-year, indicating healthy demand from existing locations.
- 3Net income rose by 15% to $305 million, with diluted earnings per share increasing to $3.61 from $2.83.
- 4The company opened 78 net new stores during the quarter, contributing to store count growth to 5,097.
- 5The effective income tax rate decreased significantly to 22.9% from 31.2%, largely due to the U.S. Tax Cuts and Jobs Act.
- 6O'Reilly repurchased $549 million of its common stock during the quarter as part of its ongoing share repurchase program.
- 7Operating income increased 5% to $423 million, though the operating margin slightly decreased to 18.5% from 18.7% due to reinvestments related to tax savings.