O'Reilly Automotive Inc.
) revealed that its board of directors has approved a resolution
that will enhance the authorization amount under its existing
share repurchase program by $500 million, effective for a
three-year period which began on November 12. With this, the
aggregate authorization amount under the program has been
increased to $3.0 billion.
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Since the inception of the share repurchase program in January
2011 until October 25, O'Reilly has repurchased 30.1 million
shares at an average price of $74.45, implying a total investment
of $2.24 billion. During the third quarter of the year, the
company has repurchased 6.4 million shares of its common stock at
an average price of $84.76, implying a total investment of $539.0
Subsequent to the end of the third quarter until October 25, the
company has repurchased an additional 1.5 million shares for an
average price of $83.49, implying a total investment of $128.0
During the first nine months of the year, the company has
repurchased 12.6 million shares at an average price of $89.62,
leading to a total investment of $1.13 billion.
O'Reilly Automotive, a Zacks #2 Rank (Buy) stock, saw a 20%
increase in earnings per share to $1.32 in the third quarter of
2012 from $1.10 in the same period last year. Quarterly earnings
also surpassed the Zacks Consensus Estimate by 5 cents per share.
Net income increased 7.3% to $159.3 million (9.9% of sales) from
$148.4 million (9.7%) in the third quarter of 2011.
Revenues in the quarter rose 4.3% to $1.60 billion from $1.54
billion a year ago, marginally missing the Zacks Consensus
Estimate of $1.62 billion. Comparable store sales (change in
sales for stores open at least one year) stood at 1.3% compared
with 4.8% in the third quarter of 2011.
Operating income improved 9.2% to $263.3 million from $241.0
million a year ago, while operating margin improved to 16.4% from
15.7% in the third quarter of 2011.
For the fourth quarter of the year, O'Reilly expects earnings per
share of $1.03 to $1.07 and consolidated comparable store sales
to increase in the range of 2% to 4%.
For full year 2012, the company anticipates earnings per share in
the range of $4.64 to $4.68, up from the previous guidance of
$4.56 to $4.66. It expects lower consolidated comparable store
sales of 3%-4% compared with the prior guidance of 3%-5%.
O'Reilly lowered its revenue guidance to $6.15 billion-$6.20
billion from $6.15 billion-$6.25 billion. The company expects
gross margin between 49.8% and 50.0% and operating margin between
15.5% and 15.8% for the year.
O'Reilly Automotive 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
The company sells an extensive line of products consisting of new
and remanufactured automotive hard parts (such as mufflers,
brakes, and shock absorbers), maintenance items, accessories, a
complete range of auto body paint and related materials,
automotive tools and professional service equipment. Its main
Advance Auto Parts Inc.