O'Reilly Automotive Inc.
) announced that its Board of Directors has approved a resolution
to boost the authorization under its share repurchase program by an
additional $500 million. The additional authorization, beginning on
August 10, 2012, is effective for 3 years.
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During the first half of the year, the company repurchased
6.3 million shares at an average price of $94.52, reflecting a
total investment of $594 million. Subsequent to the end of the
second quarter until July 25, 2012, it repurchased an
additional 3.1 million shares at an average price of $85.48,
implying a total investment of $267 million.
Since the inception of the share repurchase program in January 2011
until July 25, 2012, O'Reilly has repurchased 25.3 million shares
at an average price of $72.67, reflecting a total investment of
The company last increased the authorization under the repurchase
program by an additional $500 million on June 1, 2012. With the
additional authorization of $500 million, the cumulative
authorization under the program went up to $2.5 billion.
The company earned $1.15 per share in the second quarter of
2012, a robust 20% increase from 96 cents in the last year quarter
and inched past the Zacks Consensus Estimate by a penny. Net income
increased 9% to $146 million (9.3% of sales) from $134 million
(9.0%) in the second quarter of 2011.
Sales for the quarter rose 6% to $1.56 billion from $1.48 billion a
year ago, almost in line with the Zacks Consensus Estimate of $1.57
billion. Comparable store sales (change in sales for stores open at
least one year) scaled up 2.5% compared with 4.4% in the second
quarter of 2011.
O'Reilly has projected earnings per share of $1.25 to $1.29 and
consolidated comparable store sales to increase in the range of 1%
to 3% for the third quarter of the year. For full year 2012, the
company anticipates earnings per share in the range of $4.56 to
$4.66 and consolidated comparable store sales to increase by 3% to
5%. This compared with the previous guidance of $4.47-$4.57 and 3%
The company reiterated its revenue guidance of $6.15 billion-$6.25
billion, gross margin guidance of 49.4%-49.8% and operating margin
guidance of 15.4%-15.9% for the year. It has also reiterated its
capital expenditures guidance of $315 million to $345 million but
raised free cash flow guidance to $725 million to $775 million from
$700 million to $750 million for the year.
O'Reilly, a Zacks #3 Rank (Hold) stock, is the third largest
specialty retailer of automotive aftermarket parts, tools,
supplies, equipment, and accessories in the U.S., selling products
to both Do-it-Yourself (DIY) customers and Do-it-for-Me (DIFM) or
professional installers. Its main competitors include
Advance Auto Parts Inc.
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