What happened
Shares of O'Reilly Automotive Inc. (ORLY 0.57%), one of the largest retailers of aftermarket automotive parts, tools, and accessories, are popping 10% Thursday as of 12:17 p.m. EDT after announcing a strong first quarter and raising guidance.
So what
First-quarter sales moved 6% higher to $2.28 billion, compared to the prior year, right in line with analysts' estimates. One driving force behind revenue was its 3.4% increase in comparable store sales, above the midpoint of management's first-quarter guidance. What really stood out for investors was a 28% increase in first-quarter diluted earnings per share, checking in at $3.61 per share compared to analysts' estimates calling for $3.58 per share.
"We believe the long-term drivers for demand in our industry remain intact, including a growing and aging vehicle fleet that is driven over three trillion miles each year; but more importantly, we are very confident in our ability to continue to gain market share by providing consistently high levels of service to our customers, and we are well positioned to build on the improved trends we drove in the first quarter," said O'Reilly CEO Greg Henslee.
Image source: Getty Images.
Now what
It's a strong quarter and with the industry trends of rising miles driven and vehicle age, management is confident enough in its business to bump its full-year profit range from $15.10-$15.20 up to $15.30-$15.40 per share. O'Reilly has excelled in its dual-market approach -- both commercial and do-it-yourself businesses -- and continues to show that it can improve operations to bring more to the bottom line. Expect more strong quarters for O'Reilly down the road.
