SPRINGFIELD—Nearing the close of the fourth quarter, O’Reilly Automotive Inc. (Nasdaq: ORLY) officials say the company is on track to hit a 2019 sales goal of $10 billion.
The revenue guidance of $10 billion-$10.3 billion – on par with the company’s previous estimates – was noted in the Springfield-based auto parts retailer’s third quarter news release in October. If hit, it would be the first time the company has posted $10 billion in revenue.
For the third quarter, the company reported record revenue and net income.
“We are pleased to report strong results for the third quarter, highlighted by comparable store sales growth of 5%, which was at the high end of our guidance and on top of our solid 3.9% comparable store sales growth in the prior year,” O’Reilly Automotive CEO and co-President Greg Johnson said following the third quarter results. “Our team is committed to driving profitable growth, and we are pleased with our ability to deliver strong sales growth in the quarter while also expanding our gross margin.”
Third quarter revenue was up 7.4% to $2.7 billion, compared with $2.5 billion in the same quarter in 2018. According to the quarterly report, earnings climbed 7% to $391.3 million, or $5.08 per diluted share, from $366.2 million, or $4.50 per share, in the third quarter a year earlier.
For the nine months ending Sept. 30, revenue was at $7.7 billion. That’s up 6% from $7.2 billion at the same time in 2018. If O’Reilly Automotive matches its $2.3 billion revenue figure from fourth quarter 2018, it would hit its sales goal for 2019.
“We’ve achieved record revenue growth every year since we’ve been a public company,” said Mark Merz, vice president of investor relations, noting O’Reilly Automotive went public in April 1993. “But this would be the first time we would have achieved $10 billion in sales in a given year, which is a very big accomplishment for the company.”
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