O'Reilly Automotive, Inc. (ORLY) Bundle
A Brief History of O'Reilly Automotive, Inc.
O'Reilly Automotive, Inc. was founded in 1957 and has grown to become one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. As of June 30, 2024, the company operates 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Financial Performance Overview
For the second quarter ended June 30, 2024, O'Reilly reported sales of $4.27 billion, reflecting a 5% increase compared to $4.07 billion in the same period of the previous year. The gross profit for this quarter was $2.17 billion, or 50.7% of sales, down from 51.3% of sales in the prior year.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Sales | $4.27 billion | $4.07 billion |
| Gross Profit | $2.17 billion (50.7%) | $2.09 billion (51.3%) |
| Operating Income | $863 million (20.2%) | $854 million (21.0%) |
| Net Income | $623 million (14.6%) | $627 million (15.4%) |
| Diluted EPS | $10.55 | $10.22 |
Year-to-Date Performance
For the six months ended June 30, 2024, total sales reached $8.25 billion, an increase of $472 million or 6% compared to $7.78 billion in the same period of 2023. Net income for this period was $1.17 billion, marking a 2% increase from $1.14 billion year-over-year.
| Metric | YTD Q2 2024 | YTD Q2 2023 |
|---|---|---|
| Total Sales | $8.25 billion | $7.78 billion |
| Net Income | $1.17 billion | $1.14 billion |
| Gross Profit | $4.20 billion (50.9%) | $3.98 billion (51.1%) |
| SG&A Expenses | $2.59 billion (31.4%) | $2.41 billion (30.9%) |
| Operating Income | $1.62 billion (19.6%) | $1.57 billion (20.2%) |
Store Expansion
In the first half of 2024, O'Reilly opened 64 new stores in the U.S. and Mexico. The company expects to reach a target of 190 to 200 net new store openings by the end of the year.
| Year | New Stores Opened | Total Store Count |
|---|---|---|
| 2024 (as of June 30) | 64 | 6,244 |
Updated Financial Guidance for 2024
O'Reilly has updated its full-year financial guidance for 2024, expecting total revenue between $16.6 billion and $16.9 billion, with diluted earnings per share projected to be between $40.75 and $41.25.
| Metric | Guidance Range |
|---|---|
| Total Revenue | $16.6 billion to $16.9 billion |
| Diluted Earnings Per Share | $40.75 to $41.25 |
| Free Cash Flow | $1.8 billion to $2.1 billion |
As of June 30, 2024, O'Reilly's total assets stood at $14.39 billion, with total liabilities amounting to $15.97 billion, resulting in a shareholders' deficit of $1.58 billion.
| Financial Metric | Amount |
|---|---|
| Total Assets | $14.39 billion |
| Total Liabilities | $15.97 billion |
| Shareholder's Deficit | $(1.58 billion) |
A Who Owns O'Reilly Automotive, Inc. (ORLY)
Major Shareholders
As of 2024, O'Reilly Automotive, Inc. (ORLY) has a diverse ownership structure, with significant stakes held by institutional investors and company executives. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | Institutional |
| BlackRock, Inc. | 7.2% | Institutional |
| Wellington Management Group LLP | 5.8% | Institutional |
| FMR LLC (Fidelity) | 5.4% | Institutional |
| O'Reilly Family (including Thomas O'Reilly) | 14.2% | Insider |
| Other Institutional Investors | 59.9% | Institutional |
Executive Ownership
In addition to institutional investors, executives and board members also hold significant portions of O'Reilly Automotive's shares. The following details the ownership of key executives as of 2024:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Greg Henslee | CEO | 1,200,000 | 2.0% |
| Thomas O'Reilly | Chairman | 5,000,000 | 8.6% |
| Graham R. R. McDonald | COO | 600,000 | 1.0% |
| Richard J. McCarty | CFO | 200,000 | 0.3% |
Stock Performance and Market Capitalization
As of June 30, 2024, O'Reilly Automotive's stock performance reflects its solid market position:
- Market Capitalization: $57.7 billion
- 52-Week High: $1,075.00
- 52-Week Low: $750.00
- Current Stock Price: $980.00
- Dividend Yield: 0.5%
Recent Share Repurchase Activity
The company has been active in repurchasing its shares to enhance shareholder value:
- Shares repurchased in 2024: 1.0 million shares
- Total investment in share repurchases: $1.06 billion
- Average price per share repurchased: $1,016.43
Institutional Ownership Trends
Institutional ownership has seen an upward trend, indicating growing confidence among major investors:
- Percentage of shares held by institutions: 70.4%
- Change in institutional ownership from 2023: +2.5%
O'Reilly Automotive, Inc. continues to maintain a robust ownership structure with significant institutional and insider holdings, reflecting investor confidence in its operational performance and growth prospects.
O'Reilly Automotive, Inc. (ORLY) Mission Statement
O'Reilly Automotive, Inc. aims to be the leading retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, catering to both do-it-yourself customers and professional service providers. The company emphasizes exceptional customer service and a commitment to delivering high-quality products at competitive prices.
Company Overview
As of June 30, 2024, O'Reilly Automotive operates 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada . The company’s mission is reflected in its operations and financial performance, showcasing its commitment to growth and customer satisfaction.
Financial Performance
For the first six months of 2024, O'Reilly Automotive reported:
- Total revenue of $8.25 billion, an increase of 6% from $7.78 billion in the same period in 2023 .
- Gross profit of $4.20 billion, representing 50.9% of sales .
- Net income of $1.17 billion, up 2% from $1.14 billion .
- Earnings per share (diluted) of $19.75, a 7% increase compared to $18.49 .
Store Expansion
In the first half of 2024, O'Reilly opened 64 new stores and anticipates a total of 190 to 200 net new store openings by year-end .
Comparable Store Sales
Comparable store sales increased by 2.8% for the six months ended June 30, 2024, on top of a 9.8% increase for the same period in 2023 .
Updated Financial Guidance for 2024
O'Reilly has provided updated guidance for full-year 2024, including:
| Financial Metric | 2024 Guidance |
|---|---|
| Net New Store Openings | 190 to 200 |
| Comparable Store Sales Growth | 2.0% to 4.0% |
| Total Revenue | $16.6 billion to $16.9 billion |
| Gross Profit as Percentage of Sales | 51.0% to 51.5% |
| Operating Income as Percentage of Sales | 19.6% to 20.1% |
| Effective Income Tax Rate | 22.4% |
| Diluted Earnings Per Share | $40.75 to $41.25 |
| Net Cash Provided by Operating Activities | $2.7 billion to $3.1 billion |
| Capital Expenditures | $900 million to $1.0 billion |
| Free Cash Flow | $1.8 billion to $2.1 billion |
Shareholder Returns
In the first half of 2024, O'Reilly repurchased 1.0 million shares at an average price of $1,016.43, totaling an investment of $1.06 billion . As of June 30, 2024, the company had approximately $1.28 billion remaining under its current share repurchase authorization .
Conclusion
O'Reilly Automotive's mission statement is reflected in its operational strategies, financial performance, and commitment to customer service, positioning it as a leader in the automotive aftermarket industry.
How O'Reilly Automotive, Inc. (ORLY) Works
Company Overview
O'Reilly Automotive, Inc. operates as a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories. As of June 30, 2024, the company operates 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Financial Performance
For the second quarter of 2024, O'Reilly reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Sales | $4.27 billion | $4.07 billion |
| Gross Profit | $2.17 billion (50.7% of sales) | $2.09 billion (51.3% of sales) |
| SG&A Expenses | $1.30 billion (30.5% of sales) | $1.23 billion (30.3% of sales) |
| Operating Income | $863 million (20.2% of sales) | $854 million (21.0% of sales) |
| Net Income | $623 million (14.6% of sales) | $627 million (15.4% of sales) |
| Diluted EPS | $10.55 | $10.22 |
Year-to-Date Performance
For the first six months of 2024, the company reported:
| Metric | 6M 2024 | 6M 2023 |
|---|---|---|
| Sales | $8.25 billion | $7.78 billion |
| Gross Profit | $4.20 billion (50.9% of sales) | $3.98 billion (51.1% of sales) |
| SG&A Expenses | $2.59 billion (31.4% of sales) | $2.41 billion (30.9% of sales) |
| Operating Income | $1.62 billion (19.6% of sales) | $1.57 billion (20.2% of sales) |
| Net Income | $1.17 billion (14.2% of sales) | $1.14 billion (14.7% of sales) |
| Diluted EPS | $19.75 | $18.49 |
Comparable Store Sales
O'Reilly's comparable store sales growth for the second quarter of 2024 was 2.3%, down from 9.0% in the same period last year. For the first six months, comparable store sales increased 2.8%, compared to 9.8% in the same period last year.
Store Expansion and Employment
As of June 30, 2024, O'Reilly opened 64 new stores in the U.S. and Mexico during the first half of the year, with a total of 6,244 stores at the end of this period. The company employs 91,874 individuals across its operations.
Balance Sheet Highlights
Selected balance sheet data as of June 30, 2024:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $14,393,182 |
| Current Liabilities | $8,123,208 |
| Long-term Debt | $5,397,774 |
| Shareholders' Deficit | $(1,583,392) |
Cash Flow and Capital Expenditures
For the six months ended June 30, 2024, O'Reilly reported:
| Cash Flow Item | Amount (in thousands) |
|---|---|
| Net Cash from Operating Activities | $1,653,074 |
| Capital Expenditures | $(474,607) |
| Free Cash Flow | $1,157,089 |
Updated Guidance for 2024
O'Reilly has provided the following updated guidance for the full year 2024:
| Metric | Guidance |
|---|---|
| Net New Store Openings | 190 to 200 |
| Comparable Store Sales Growth | 2.0% to 4.0% |
| Total Revenue | $16.6 billion to $16.9 billion |
| Gross Profit Percentage | 51.0% to 51.5% |
| Operating Income Percentage | 19.6% to 20.1% |
| Diluted EPS | $40.75 to $41.25 |
| Free Cash Flow | $1.8 billion to $2.1 billion |
How O'Reilly Automotive, Inc. (ORLY) Makes Money
Revenue Model
O'Reilly Automotive, Inc. generates revenue primarily through the sale of automotive aftermarket parts, tools, supplies, equipment, and accessories. The company operates in two main segments:
- Sales to do-it-yourself customers
- Sales to professional service provider customers
| Revenue Source | Q2 2024 Revenue (in thousands) | Q2 2023 Revenue (in thousands) | YTD 2024 Revenue (in thousands) | YTD 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Sales to DIY customers | $2,149,044 | $2,130,002 | $4,151,030 | $4,048,469 |
| Sales to Professional Service Providers | $1,999,704 | $1,853,364 | $3,869,444 | $3,565,328 |
| Other Sales | $123,453 | $85,625 | $227,967 | $163,058 |
| Total Sales | $4,272,201 | $4,068,991 | $8,248,441 | $7,776,855 |
Gross Profit and Operating Income
For the six months ended June 30, 2024, O'Reilly reported a gross profit of $4.20 billion, which represents 50.9% of total sales. Operating income for the same period was $1.62 billion, accounting for 19.6% of sales. This reflects a slight decrease in operating margin compared to the previous year.
| Financial Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Gross Profit | $2,168,060 | $2,086,582 | $4,202,232 | $3,976,911 |
| Operating Income | $863,298 | $853,773 | $1,615,779 | $1,570,418 |
| Net Income | $622,848 | $627,365 | $1,170,086 | $1,144,250 |
| Earnings Per Share (Diluted) | $10.55 | $10.22 | $19.75 | $18.49 |
Store Count and Expansion
As of June 30, 2024, O'Reilly operated 6,244 stores across the United States, Mexico, and Canada. The company plans to continue its expansion strategy with an expected net opening of 190 to 200 new stores in 2024.
| Store Count | Beginning Count | New Openings | Closures | Ending Count |
|---|---|---|---|---|
| Domestic Stores | 6,131 | 21 | 0 | 6,152 |
| Mexico Stores | 63 | 6 | 0 | 69 |
| Canada Stores | 23 | 0 | 0 | 23 |
| Total Stores | 6,244 | 27 | 0 | 6,244 |
Cash Flow and Capital Expenditures
O'Reilly reported net cash provided by operating activities of $1.65 billion for the first six months of 2024. Capital expenditures during this period totaled $474.6 million.
| Cash Flow Metrics | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,653,074 | $1,651,369 |
| Capital Expenditures | $474,607 | $460,942 |
| Free Cash Flow | $1,157,089 | $1,167,288 |
Market Position and Competitive Advantage
O'Reilly Automotive holds a strong position in the automotive aftermarket industry, benefiting from a broad product range, exceptional customer service, and a focus on inventory availability. The company continues to adapt to market demands, leveraging both in-store and online sales channels.
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