O’Reilly Automotive Inc (NASDAQ:ORLY) stock fell 3.70% (As on February 8, 11:16:37 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23 and forecast full-year profit below estimates. Volatile winter weather as well as cautious consumer spending habits during the holiday season resulted in a 3.4% rise in fourth-quarter comparable sales, compared with 9% growth a year earlier. Gross profit for the fourth quarter increased 6% to $1.97 billion (or 51.3% of sales) from $1.85 billion (or 50.9% of sales) for the same period one year ago. Selling, general and administrative expenses (SG&A) for the fourth quarter increased 7% to $1.25 billion (or 32.6% of sales) from $1.17 billion (or 32.2% of sales) for the same period one year ago. Operating income for the fourth quarter increased 5% to $719 million (or 18.8% of sales) from $682 million (or 18.7% of sales) for the same period one year ago. Net income for the fourth quarter ended December 31, 2023, increased $24 million, or 5%, to $553 million (or 14.4% of sales) from $529 million (or 14.5% of sales) for the same period one year ago.
ORLY in the fourth quarter of FY 23 has reported the adjusted earnings per share of $9.26, beating the analysts’ estimates for the adjusted earnings per share of $9.07, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 5 percent to $3.83 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $3.84 billion.
Additionally, during the fourth quarter ended December 31, 2023, the Company repurchased 0.6 million shares of its common stock, at an average price per share of $922.86, for a total investment of $560 million. Subsequent to the end of the fourth quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $967.63, for a total investment of $102 million.
O’Reilly said it planned to open 190 to 200 stores in the year, and forecast 2024 capital expenditure between $900 million and $1 billion, compared with LSEG estimates of $724.3 million. The Springfield, Missouri-based company expects full-year profit of $41.05 to $41.55 per share, below analysts’ expectation of $42.64 per share. It expects total revenue of $16.8 billion to $17.1 billion for 2024, compared with estimates of $16.80 billion.