Summary
O'Reilly Automotive, Inc. (ORLY) reported a strong first quarter for 2006, continuing its trend of record revenues and earnings for the 50th consecutive quarter since its public offering. The company announced a 22.1% increase in net income to $40.6 million and a 16.7% rise in diluted earnings per share to $0.35. This growth was driven by a 15.1% increase in product sales, reaching $536.5 million, and an improvement in gross profit margin to 43.5% from 42.1% in the prior year's quarter. Despite challenges like unseasonably warm winter temperatures, comparable store sales saw a 3.8% increase. The company is actively expanding its footprint, adding 36 new stores in the quarter and preparing for the opening of a new distribution center in Indianapolis. O'Reilly remains on track with its aggressive expansion plans, aiming to open 170 to 175 new stores in 2006. These results and strategic initiatives underscore the company's consistent execution and focus on profitable growth.
Key Highlights
- 1Record revenues and earnings for the 50th consecutive quarter.
- 2Net income increased by 22.1% to $40.6 million for Q1 2006.
- 3Diluted earnings per share rose 16.7% to $0.35.
- 4Product sales grew 15.1% to $536.5 million.
- 5Gross profit margin improved to 43.5% from 42.1% year-over-year.
- 6Comparable store sales increased by 3.8%.
- 7Company opened 36 new stores and plans 170-175 new stores in 2006, supported by a new distribution center.