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O'Reilly Approves Additional $1B Repurchase Authorization


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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.

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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

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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



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