O’Reilly Automotive Inc. has announced record revenue and earnings for its fourth quarter ended Dec. 31, 2021. The results represent 29 consecutive years of comparable stores sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993.
O’Reilly’s CEO and Co-President, Greg Johnson, commented, “We are very pleased to once again report an extremely strong quarter, highlighted by 14.5% growth in comparable store sales and a 41% increase in diluted earnings per share. This incredible performance in the fourth quarter caps a tremendous year for our company, a year in which we delivered the best financial results in our company’s history, after setting the same records in 2020. Our full-year 2021 comparable store sales growth of 13.3%, on top of our strong 2020 performance, represents a two-year stack of 24.2% and is a testament to our Team’s unrelenting dedication to our customers. These accomplishments are all the more impressive in light of the extremely difficult challenges our team has faced the past two years, and I am extremely grateful for Team O’Reilly’s commitment to meeting the critical needs of our customers during the pandemic.”
Sales for the fourth quarter ended Dec. 31, 2021, increased $463 million, or 16%, to $3.29 billion from $2.83 billion for the same period one year ago. Gross profit for the fourth quarter increased 18% to $1.73 billion (or 52.7% of sales) from $1.47 billion (or 52.0% of sales) for the same period one year ago. Operating income for the fourth quarter increased 27% to $676 million (or 20.5% of sales) from $534 million (or 18.9% of sales) for the same period one year ago.
Net income for the fourth quarter ended Dec. 31, 2021, increased $126 million, or 32%, to $519 million (or 15.8% of sales) from $393 million (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 41% to $7.64 on 68 million shares versus $5.40 on 73 million shares for the same period one year ago.
Full-Year Financial Results
Johnson continued, “Team O’Reilly’s dedication to unsurpassed customer service levels and relentless focus on profitable growth translated our strong top-line performance in 2021 into a record 21.9% operating margin, which exceeded our previous record operating margin by over 100 basis points. Our full-year diluted earnings per share increased 32% to $31.10, which represents a compounded annual growth rate of 25% over the last three years. I would like to congratulate Team O’Reilly for exceeding our sales and profitability goals in yet another incredible year and thank each of them for their continued hard work and dedication to our ongoing success.”
Sales for the year ended Dec. 31, 2021, increased $1.72 billion, or 15%, to $13.33 billion from $11.60 billion for the same period one year ago. Gross profit for the year increased 15% to $7.02 billion (or 52.7% of sales) from $6.09 billion (or 52.4% of sales) for the same period one year ago. Operating income for the year ended December 31, 2021, increased 21% to $2.92 billion (or 21.9% of sales) from $2.42 billion (or 20.8% of sales) for the same period one year ago.
Net income for the year ended Dec. 31, 2021, increased $412 million, or 24%, to $2.16 billion (or 16.2% of sales) from $1.75 billion (or 15.1% of sales) for the same period one year ago. Diluted earnings per common share for the year ended December 31, 2021, increased 32% to $31.10 on 70 million shares versus $23.53 on 74 million shares for the same period one year ago.
“As we look forward to 2022,” Johnson continued, “we remain confident in the strength of our team and our industry, and our 2022 financial guidance reflects our expectations for continued strong customer demand, as well as our planned strategy to further invest in pricing on the professional side of our business. We continually monitor the competitive landscape in our industry and have been extremely pleased with our ability to grow both our DIY and professional business at record levels over the last two years; however, we believe we have an opportunity to accelerate our professional share gain through targeted competitive adjustments to our pricing strategy. We have incorporated our expectations for continued robust demand on both sides of our business and the anticipated sales lift from our professional pricing initiative in establishing our 2022 comparable store sales guidance range of 5% to 7%. Our gross profit and operating profit guidance ranges also reflect the rollout of our professional pricing initiative, which we strongly believe will further solidify our competitive position and drive long-term profitable growth.”
Share Repurchase Program
During the fourth quarter, the company repurchased 0.7 million shares of its common stock, at an average price per share of $637.15, for a total investment of $469 million. During the year ended Dec. 31, 2021, the company repurchased 4.5 million shares of its common stock, at an average price per share of $545.78, for a total investment of $2.48 billion. Subsequent to the end of the fourth quarter and through the date of this release, the company repurchased an additional 0.3 million shares of its common stock, at an average price per share of $660.23, for a total investment of $215 million. The company has repurchased a total of 85.9 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $197.48, for a total aggregate investment of $16.96 billion. As of the date of this release, the company had approximately $1.79 billion remaining under its current share repurchase authorizations.
