O’Reilly Auto tracks closer to $10B sales goal

Last edited 4:55 p.m., Oct. 24, 2019

With the final quarter of the year underway, 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 to $10.3 billion — on par with previous estimates — is included in the Springfield-based auto parts retailer’s third quarter news release. 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. On the news, O’Reilly Automotive’s shares hit a new 52-week high of $442.15 this morning. The company’s 52-week low is $314.14.

“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 in the release. “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.”

Earnings climbed 7% to $391.3 million, or $5.08 per diluted share, from $366.2 million, or $4.50 per share, a year earlier. Revenue was up 7.4% to $2.7 billion, compared with $2.5 billion in third quarter 2018, according to the release.

For the nine months ended 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 revenue figure from fourth quarter 2018 — at $2.3 billion — it would hit its sales goal for 2019.