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Mar 31, 2020
O'Reilly Auto Q1 2020 Earnings Report
O'Reilly Automotive's first quarter earnings declined due to the impact of COVID-19 and mild weather conditions.
Key Takeaways
O'Reilly Automotive reported a 3% increase in sales to $2.48 billion, but comparable store sales decreased by 1.9%. Net income fell by 6% to $300 million, and diluted earnings per share decreased by 2% to $3.97. The company withdrew its full-year 2020 guidance due to the uncertainty related to COVID-19.
Comparable store sales decreased by 1.9% due to COVID-19 impact.
Total sales increased by 2.7% to $2.48 billion.
Net income decreased by 6% to $300 million.
Full-year 2020 guidance was withdrawn due to COVID-19 uncertainty.
Forward Guidance
Due to the unprecedented and rapidly evolving uncertainty related to COVID-19, the Company is withdrawing all previously issued 2020 guidance.
Positive Outlook
- Company successfully issued $500 million aggregate principal amount of unsecured 4.200% Senior Notes due 2030.
- Notes issuance further strengthened the Company’s liquidity position.
- Company had $1.1 billion in cash and unused capacity available on its existing revolving credit facility.
- Teams have taken appropriate actions to reduce costs and conserve cash, including reducing store operating hours
- Teams have taken appropriate actions to reduce costs and conserve cash, including delaying discretionary capital investments
Challenges Ahead
- Company is living in highly uncertain times and cannot predict how long the current crisis will last or how severe the impact will be to our customers and our business.
- Company is withdrawing its 2020 operating guidance.
- Company is withdrawing its 2020 cash flow guidance.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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