DOW JONES NEWSWIRES
O'Reilly Automotive Inc.'s (ORLY) fourth-quarter profit jumped
68% as the company posted double-digit percentage sales growth for
the fourth quarter in a row and margins improved.
But shares sank 6.8% to $38 in after-hours trading as the
auto-parts retailer predicted 2010 earnings below Wall Street's
expectations. The stock, which is near its all-time high, has
gained 50% in the past year.
O'Reilly expects 2010 earnings of $2.50 to $2.56, while analysts
were looking for $2.61. It also forecast first-quarter earnings of
56 cents to 60 cents, while analysts estimated 59 cents.
O'Reilly, along with other auto-parts companies, has benefited
during the recession as more people have kept their vehicles
longer. Earlier Wednesday, rival Advance Auto Parts Inc. (AAP)
reported a 41% increase in fiscal fourth-quarter profit on
prior-year charges and higher sales and margins, although the
results failed to meet analysts' expectations.
For the latest quarter, O'Reilly reported a profit of $71.9
million, or 52 cents a share, up from $42.7 million, or 32 cents a
share, a year earlier. Excluding items, earnings rose to 52 cents
from 37 cents. In October, O'Reilly predicted 7 cents to 51 cents,
above then-estimates.
Revenue rose 5.3% to $1.17 billion. Analysts most recently
projected $1.19 billion, according to a poll by Thomson
Reuters.
Same-store sales rose 2.7% overall, in line with O'Reilly's
guidance of 2% to 4% growth. Same-store sales increased 2.4% in
core namesake stores and 3.5% in acquired CSK stores.
Gross margin rose to 48.5% from 46.2%.
At the end of the quarter, O'Reilly had 3,421 stores, up 4.1%
from a year earlier.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com