O’Reilly Automotive has announced record revenues and earnings for its second quarter ended June 30, 2016.
Sales for the second quarter increased $141 million, or 7 percent, to $2.18 billion from $2.04 billion for the same period one year ago. Gross profit for the second quarter increased to $1.13 billion (or 51.8 percent of sales) from $1.06 billion (or 52 percent of sales) for the same period one year ago, representing an increase of 6 percent.
Net income for the second quarter increased $24 million, or 10 percent, to $258 million (or 11.8 percent of sales), from $234 million (or 11.5 percent of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 16 percent to $2.65 on 97 million shares versus $2.29 on 102 million shares for the same period one year ago.
“We are proud to report another solid quarter, highlighted by an operating margin of 19.5 percent and a 16 percent increase in second quarter diluted earnings per share to $2.65, which exceeded the top of our guidance range and represents our 30th consecutive quarter of diluted earnings per share growth of greater than 15 percent,” said Greg Henslee, O’Reilly’s president and CEO. “For the second quarter, our focus on customer service generated a 4.3 percent increase in comparable store sales, which was on top of a 7.2 percent increase from the second quarter of 2015 and was above the mid-point of our second quarter guidance range. This performance is the direct result of Team O’Reilly’s commitment to providing consistently excellent service to our customers, and I would like to thank our over 74,000 dedicated team members for their continued hard work and countless contributions to our ongoing success.”
Year-to-Date Financial Results
Sales for the first six months of 2016 increased $335 million, or 9 percent, to $4.27 billion from $3.94 billion for the same period one year ago. Gross profit for the first six months of 2016 increased to $2.22 billion (or 52.1 percent of sales) from $2.05 billion (or 52 percent of sales) for the same period one year ago, representing an increase of 9 percent.
Net income for the first six months of 2016 increased $67 million, or 15 percent, to $513 million (or 12 percent of sales) from $446 million (or 11.3 percent of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2016 increased 20 percent to $5.24 on 98 million shares versus $4.35 on 103 million shares for the same period one year ago.
Henslee continued, “In the first half of 2016, we opened 89 net, new stores across 28 states and are on track to hit our target of 210 net, new stores by the end of the year. In May, we seamlessly opened our 27th distribution center in Selma, Texas, just outside of San Antonio. This new, 389,000-square-foot, state-of-the-art facility allows our distribution team to better support our stores in our robustly growing San Antonio and Austin metro markets and frees up capacity in our three existing Texas distribution centers, better positioning those facilities to support future store growth. Our ongoing investment in our distribution infrastructure creates capacity for future growth and reflects O’Reilly’s continued commitment to providing our customers unparalleled service with industry-leading parts availability.”
Share Repurchase Program
During the second quarter, the company repurchased 2.1 million shares of its common stock, at an average price per share of $262.17, for a total investment of $544 million. During the first six months of 2016, the company repurchased 3.3 million shares of its common stock, at an average price per share of $259.14, for a total investment of $857 million.
