Summary
O'Reilly Automotive, Inc. (ORLY) reported solid financial results for the third quarter and first nine months of 2022, demonstrating resilience in the automotive aftermarket sector. Sales continued to grow year-over-year, driven by a combination of comparable store sales increases and new store openings. The company maintained healthy operating margins despite some pressure on gross profit percentage due to strategic pricing initiatives and a shift in sales mix towards professional customers. Net income for the quarter saw a modest increase, while for the nine-month period, it slightly decreased year-over-year, impacted by various factors including increased interest expense and a lower effective tax rate benefit. Diluted earnings per share, however, showed strong growth for both the quarter and the nine-month period, benefiting from a reduced share count due to continued share repurchases. The company's liquidity remains robust, supported by strong operating cash flows, and it continues to invest in store expansion, indicating confidence in future growth. Investors should note the ongoing inflationary pressures and their impact on consumer spending, though ORLY has demonstrated an ability to pass on costs.
Financial Highlights
46 data points| Revenue | $3.80B |
| Cost of Revenue | $1.86B |
| Gross Profit | $1.93B |
| SG&A Expenses | $1.13B |
| Operating Income | $804.19M |
| Interest Expense | $43.16M |
| Net Income | $585.44M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 949.32M |
| Shares Outstanding (Diluted) | 957.90M |
Key Highlights
- 1Sales increased by 9% to $3.80 billion for the three months ended September 30, 2022, and by 7% to $10.77 billion for the nine months ended September 30, 2022, compared to the prior year periods.
- 2Comparable store sales increased by 7.6% for the three months and 5.6% for the nine months ended September 30, 2022, indicating continued customer demand.
- 3Operating income grew 7% to $804 million for the quarter, though it saw a 1% decrease to $2.27 billion for the nine-month period year-over-year.
- 4Diluted earnings per share rose significantly by 14% to $9.17 for the quarter and by 7% to $25.08 for the nine months, benefiting from share repurchases.
- 5The company opened 38 net new stores in the third quarter and 154 net new stores year-to-date, demonstrating continued expansion efforts.
- 6Despite an increase in long-term debt, the company maintained compliance with its debt covenants, reporting strong fixed charge coverage and leverage ratios.
- 7Total assets grew to $12.24 billion as of September 30, 2022, with inventory increasing by approximately 12% to $4.14 billion, supporting sales growth.