O'Reilly Auto posts $148M earnings in 3Q

O'Reily Automotive Inc. (Nasdaq: ORLY) recorded third-quarter net income of $148.4 million, a 27.4 percent increase compared to earnings of $116.5 million in the same quarter last year.

Earnings per diluted share were $1.10 during the quarter, up from 86 cents per diluted share in third-quarter 2010, according to a company news release.

Sales for the quarter jumped 8 percent to $1.54 billion from $1.43 billion a year ago.

O'Reilly Auto opened 50 stores during the quarter, increasing its store count to 3,707 in 39 states. The company has opened 149 stores and closed 12 during 2011, according to the release.

Third-quarter highlights:

• Amid a $1 million stock repurchase program initiated in January and expanded in August, the company repurchased 8.2 million shares of its common stock at at an average price per share of $61.51 during the quarter for a total investment of $502 million, including sale of stock by top executives. As of Oct. 26, the company had roughly $141 million remaining under the repurchase program.
• The company increased its employee count to 49,254, compared to 47,334 in the third quarter of 2010.
• Operating income was $241.1 million, up from $199 million a year ago.

During the quarter, the company paid a one-time monetary penalty of $20.9 million to the U.S. Department of Justice to settle an investigation of CSK Auto Corp., which O'Reilly acquired in July 2008. The investigation involved CSK's accounting practices prior to being bought out by O'Reilly, the release said.

As of Sept. 30, the company's assets were $5.4 billion.

O'Reilly Auto shares were trading at $75.77 as of 11:24 a.m., compared to a 52-week range of $53.33 to $77.35.[[In-content Ad]]