O'Reilly Auto's Q2 profits dip, despite revenue increase

O'Reilly Automotive Inc. (Nasdaq: ORLY) reported mixed results in the second quarter, with a drop in net income despite an increase in revenue.

The Springfield-based auto parts retailer produced quarterly profits of $622.8 million, or $10.55 per diluted share, compared with $627.4 million, or $10.22 per diluted share, a year earlier, according to a news release. The profit decrease was roughly 0.7%.

Revenue was up by around 5% to $4.3 billion from $4.1 billion in the same quarter last year. The bottom line was impacted by a 3.8% increase in provision for income taxes to $188.7 million.

"Our comparable store sales results were below our expectations for the second quarter, as the soft demand environment we experienced at the beginning of the quarter persisted through May. Sales trends improved in June, in line with our expectations, aided by strong performance in summer weather-related categories in many of our markets," said Brad Beckham, O'Reilly Automotive CEO, in the release. "Despite the challenges we have seen in the demand environment in the first half of 2024, we believe our industry’s long-term drivers for demand remain strong."

O'Reilly Automotive has updated its full-year comparable store sales guidance to a range of 2% to 4% from 3% to 5%.

As of June 30, O'Reilly Automotive had $14.4 billion in assets and 6,244 stores across 48 U.S. states, Puerto Rico, Mexico and Canada, according to the release.

ORLY shares were trading at $1,088.61 as of 9:08 a.m., compared with a 52-week range of $860.10 to $1,169.11 per share.