O'Reilly Approves Additional $1B Repurchase Authorization

Shutterstock photo

To the delight of its shareholders, O'Reilly Automotive, Inc. 's ORLY board approved an increase in the share repurchase authorization program by an additional $1 billion. This raised the aggregate authorization under the program to $12.75 billion.

O'Reilly is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The company sells products to Do-it-Yourself (DIY) customers and Do-it-for-Me (DIFM) or professional installers. Strong cash flow aids O'Reilly to pursue an aggressive share-repurchase policy, which continues to boos t earnings per share. In the first quarter of 2019, the company repurchased 0.9 million shares for $322 million. In 2018, it bought back 6.1 million shares for $1.71 billion.

The additional $1 billion authorization is effective for a three-year period, beginning on May 31, 2019.  In first-quarter 2019, O'Reilly's adjusted earnings per share were $4.05, marking 12% rise from $3.61 in the prior-year quarter. However, the figure missed the Zacks Consensus Estimate of $4.06.

A few other stocks in the auto space are Ford Motor Company F , Fox Factory Holding Corp. FOXF and Cummins Inc. CMI . Ford, Fox Factory and Cummins have expected long-term growth rates of 7.3%, 16.4% and 8%, respectively.

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

Ford Motor Company (F): Free Stock Analysis Report

O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report

Cummins Inc. (CMI): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: FOXF , F , ORLY , CMI

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?