O'Reilly Automotive's profit misses on higher costs
April 24, 2024 at 05:23 pm EDT
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April 24 (Reuters) - Auto parts distributor O'Reilly
Automotive missed analysts' estimates for first-quarter
profit on Wednesday, hurt by increased costs, sending its shares
down more than 3% after the bell.
Investments in store expansion and securing higher quality
and technologically advanced products amid growing popularity of
electric vehicles has significantly driven up expenses for the
company.
Auto parts sellers were also hit by tough weather
conditions, hurting sales during the start of the year.
O'Reilly forecast its capital expenditure for 2024 to range
between $900 million and $1.0 billion and plans to open 190 to
200 stores in the year.
Its comparable sales rose 3.4% in the first quarter, versus
10.8% growth a year earlier.
The Springfield, Missouri-based company posted adjusted
profit of $9.20 per share, compared with analysts' average
estimate of $9.26 per share, according to LSEG data.
The company reported sales of $3.980 billion for the quarter
ended March 31, mostly in line with estimates.
It forecast 2024 adjusted profit per share to be between
$41.35 and $41.85, below analysts' estimate of $42.42 per share.
(Reporting by Raechel Thankam Job and Aatreyee Dasgupta;
Editing by Shilpi Majumdar)
O'Reilly Automotive, Inc. is one of the largest American distributors of automotive parts. The products are sold under own brands (BesTest®, BrakeBest®, Cartek®, Import Direct®, MasterPro®, MicroGard®, Murray®, Omnispark®, O'Reilly Auto Parts®, Precision®, Power Torque®, Super Start®, Syntec® and Ultima®) and third-party brands (AC Delco, Armor All, Bosch, Castrol, Dorman, Fel-Pro, Gates Rubber, Lucas Oil, Mobil1, Monroe, Moog, Pennzoil, Prestone, Standard, STP, Turtle Wax, Valvoline, Wagner et Wix). The group's activity is primarily organized around 3 families of products:
- automotive parts: alternator, starters, water pumps, chassis parts, etc.;
- maintenance products: antifreeze, filters, etc.;
- accessories: primarily automotive carpets and seat covers.
At the end of 2022, the products were marketed through a network of 5,971 stores located in the United States (5,929) and Mexico (42).