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Sep 30, 2022

O'Reilly Auto Q3 2022 Earnings Report

O'Reilly Automotive's Q3 2022 performance was highlighted by strong comparable store sales growth and an increase in diluted earnings per share.

Key Takeaways

O'Reilly Automotive, Inc. reported record revenue and earnings for the third quarter ended September 30, 2022. Comparable store sales increased by 7.6%, and diluted earnings per share increased by 14% to $9.17. The company opened 154 net new stores year-to-date and is on track to reach its target of approximately 180 net new store openings in 2022.

Third quarter comparable store sales growth of 7.6%, with a three-year stack increase of 31.2%.

Diluted earnings per share increased 14% to $9.17.

Sales for the third quarter increased 9% to $3.80 billion.

Net income for the third quarter increased 5% to $585 million.

Total Revenue
$3.8B
Previous year: $3.48B
+9.2%
EPS
$9.17
Previous year: $8.07
+13.6%
Comparable Store Sales Growth
7.6%
Previous year: 6.7%
+13.4%
Sales per Square Foot
$84.5
Previous year: $79.7
+6.0%
Sales per Store
634
Previous year: 597
+6.2%
Gross Profit
$1.93B
Previous year: $1.82B
+6.4%
Cash and Equivalents
$67.1M
Previous year: $449M
-85.1%
Free Cash Flow
$801M
Previous year: $734M
+9.1%
Total Assets
$12.2B
Previous year: $11.8B
+3.8%

O'Reilly Auto

O'Reilly Auto

Forward Guidance

O'Reilly Automotive provided updated full-year 2022 guidance, including comparable store sales growth between 4.5% and 5.5%, total revenue between $14.1 billion and $14.3 billion, and diluted earnings per share between $32.35 and $32.85.

Positive Outlook

  • Comparable store sales growth between 4.5% and 5.5%
  • Total revenue between $14.1 billion and $14.3 billion
  • Gross profit as a percentage of sales between 50.8% and 51.3%
  • Operating income as a percentage of sales between 20.3% and 20.6%
  • Net cash provided by operating activities between $2.5 billion and $3.0 billion

Challenges Ahead

  • Effective income tax rate of 23.0%
  • Capital expenditures between $550 million and $650 million
  • Free cash flow between $1.8 billion and $2.1 billion
  • The company faces risks, uncertainties and assumptions, including, but not limited to, the COVID-19 pandemic or other public health crises.
  • The company faces risks, uncertainties and assumptions, including, but not limited to, the economy in general and inflation.