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O’Reilly Automotive Reports Third Quarter 2021 Results

The parts retailer reported a 14% increase in third quarter diluted earnings per share, and a year-to-date increase of 29%.

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O’Reilly Automotive has announced record revenue and earnings for its third quarter ended Sept. 30, 2021. 

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Greg Johnson, O’Reilly’s CEO and Co-President, commented, “We are pleased to once again report another very profitable quarter, highlighted by a 6.7% increase in third quarter comparable store sales, on top of the incredibly strong 16.9% increase we generated in the prior year, and an impressive 14% increase in diluted earnings per share to $8.07. This represents the sixth consecutive quarter our Team has delivered double-digit diluted earnings per share growth. Team O’Reilly’s continued commitment to providing consistently excellent customer service, while diligently executing our safety protocols in the midst of the ongoing pandemic, is truly remarkable, and I would like to thank each member of our Team for their extraordinary dedication and hard work.” 

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Sales for the third quarter ended Sept. 30, 2021, increased $272 million, or 8%, to $3.48 billion from $3.21 billion for the same period one year ago. Gross profit for the third quarter increased 8% to $1.82 billion (or 52.3% of sales) from $1.68 billion (or 52.4% of sales) for the same period one year ago. 

Operating income for the third quarter increased 4% to $755 million (or 21.7% of sales) from $725 million (or 22.6% of sales) for the same period one year ago. Net income for the third quarter increased $31 million, or 6%, to $559 million (or 16.1% of sales) from $527 million (or 16.4% of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 14% to $8.07 on 69 million shares versus $7.07 on 75 million shares for the same period one year ago. 

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Year-to-Date Financial Results 

Mr. Johnson continued, “The top-line strength we experienced through the first three quarters of the year has continued thus far in October, and we expect to generate continued solid sales volumes as we finish out 2021. Our performance is a testament to the value proposition delivered by our dedicated Team, and we are confident in Team O’Reilly’s ability to provide excellent customer service and drive continued outstanding results; as a result, we are increasing our full-year 2021 comparable store sales guidance to a range of 10% to 12%, which reflects our strong year-to-date performance and our expectations for the remainder of the fourth quarter.” 

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Johnson concluded, “Through the first nine months of 2021, we continued to build our brand with the addition of 146 net, new stores across 40 U.S. states, and we continue to be very pleased with the performance of our new stores. Based on our favorable outlook of the long-term demand drivers within our industry and, most importantly, our confidence in our Team’s ability to execute our business model, we are pleased to announce our plans to increase our new store openings to a range of 175 to 185 net, new stores in 2022.” 

Sales for the first nine months of 2021 increased $1.26 billion, or 14%, to $10.04 billion from $8.78 billion for the same period one year ago. Gross profit for the first nine months of 2021 increased 15% to $5.29 billion (or 52.7% of sales) from $4.61 billion (or 52.6% of sales) for the same period one year ago. 

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Operating income for the first nine months of 2021 increased 19% to $2.24 billion (or 22.3% of sales) from $1.89 billion (or 21.5% of sales) for the same period one year ago. Net income for the first nine months of 2021 increased $286 million, or 21%, to $1.65 billion (or 16.4% of sales) from $1.36 billion (or 15.5% of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2021 increased 29% to $23.45 on 70 million shares versus $18.12 on 75 million shares for the same period one year ago. 

Share Repurchase Program 

During the third quarter, the company repurchased 1.6 million shares of its common stock, at an average price per share of $595.96, for a total investment of $943 million. During the first nine months of 2021, the company repurchased 3.8 million shares of its common stock, at an average price per share of $528.09, for a total investment of $2.01 billion. Subsequent to the end of the third 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 $615.41, for a total investment of $188 million. The company has repurchased a total of 85.1 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 $193.41, for a total aggregate investment of $16.46 billion. As of the date of this release, the company had approximately $786 million remaining under its current share repurchase authorization.

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