O’Reilly reports increase in 3Q sales

Net income for the quarter was $47.9 million, up 12.4 percent from $42.6 million in third-quarter 2005, excluding a one-time tax benefit of $6.1 million. When factoring in the tax benefit, net income fell 2 percent in the quarter from $48.6 million last year. Earnings per share for the quarter were 42 cents, unchanged from the same quarter last year.

Product sales rose 10 percent in the quarter to $597 million. Gross profit was up 11.6 percent to $263 million, and operating, selling, general and administrative expenses increased 11.8 percent to $188 million.

The automotive aftermarket retailer added 41 stores in the third quarter for a total of 1,596 locations. O’Reilly plans to add another 44 stores in the fourth quarter.

Comparable store product sales for stores open at least one year increased 3.6 percent for the quarter.

“We are pleased with another successful quarter for … O’Reilly, particularly in light of the challenging macroeconomic environment in the aftermarket industry,” said CEO and Co-President Greg Henslee in a news release.

The auto-parts market gained another competitor Monday, when Internet retailer Amazon.com announced it now offers more than 1 million new, used and remanufactured automotive parts for sale online.

O’Reilly released its quarterly report after the market closed Tuesday, when shares (Nasdaq: ORLY) closed at $34.82. Shares were trading down at $32.05 as of 10:30 this morning.