O'Reilly hits record high

The company’s shares closed Feb. 14 at $33.78, an unsurpassed high at the time, and closed Feb. 15 at $34.07.

O’Reilly stock analyst Michael Cox, of Piper Jaffray & Co., said the increase can most likely be attributed to higher confidence of stockholders, who expect O’Reilly to announce strong quarterly results Feb. 28.

Cox also noted that auto retail parts companies have seen increases across the board due to an amplified demand following hurricanes Katrina and Rita.

Virginia-based Advance Auto Parts reported Feb. 16 a 23 percent quarterly earnings increase.

“I would attribute (O’Reilly’s stock activity) to expectations of strong sales and earnings … with the continued strong internal execution, combined with the favorable impact of the hurricanes last fall and the impact that has on automotive after-market part demand,” Cox said.

O’Reilly earlier this month also announced that it had reached its four-year goal to set a record of $2 billion in annual sales in 2005.

Though O’Reilly and other auto parts retailers are reportedly doing well, one local competitor has been faltering.

Philadelphia-based Pep Boys earlier this month hired an adviser to consider financial alternatives to boost its waning sales. Shares of Pep Boys fell 34 cents to $15.90 Feb. 10, and shares closed at $16.28 Feb. 15, compared to a 52-week range of $11.75 to $18.80.

According to a Pep Boys news release, shares are off 4 percent from last year, compared to O’Reilly’s 41 percent gain, a 46 percent increase at Advance Auto Parts and a 4 percent gain at Autozone.

This story originally appeared in SBJ’s Feb. 16 free e-news Daily Update. Click here to register.