On Oct 16, 2013, shares of
O'Reilly Automotive Inc.
) reached a new 52-week high of $132.54.
O'Reilly Automotive has a competitive advantage due to its
dual market strategy and is continuously benefiting from a strong
distribution network. The company reported positive earnings
surprise in the past four quarters with an average beat of
Even in the third quarter of 2013, O'Reilly Automotive is
expected to beat the Zacks Consensus Estimate of $1.65. The
company is expected to release its third-quarter financial
results after the closing bell on Oct 23.
O'Reilly Automotive aggressively continues to open new stores
in order to achieve greater penetration in existing markets and
to reach new, contiguous markets. In 2012, the company opened 185
stores and expects to open a total of 190 stores in 2013.
Further, O'Reilly Automotive pursues an aggressive share
repurchase policy, which continues to boost earnings. In May
2013, the company's board of directors approved an increase in
share repurchase authorization by $500 million, taking the total
authorization to $3.5 billion.
During the first half of 2013, O'Reilly Automotive repurchased
5.0 million shares for $502 million at an average price of
$100.10. As of Jul 24, 2013, the company had approximately $521
million worth of shares remaining under its share repurchase
O'Reilly Automotive expects earnings per share in the range of
$5.64 to $5.74 in 2013. The company also expects revenues of $6.6
billion to $6.7 billion, gross margin of 50.0% to 50.4% and
operating margin between 15.8% and 16.2% for the year.
The Zacks Consensus Estimate for the company's 2013 earnings
per share stands at $5.95, up 25.17% over 2013. The estimate for
2014 stands at $6.77 per share, up 13.84% year over year.
O'Reilly Automotive is a prominent player in the automotive
replacement parts and accessories industry along with
Advance Auto Parts Inc.
). The company currently carries a Zacks Rank #3 (Hold).
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