O'Reilly Automotive forecasts dim full-year profit as expenses mount

OReilly Automotive

07/02/2024 22:43

Feb 7 (Reuters) - Auto Parts distributor O'Reilly
Automotive Inc  ORLY.O  forecast full-year profit below
estimates on Wednesday, as expenses rise, sending its shares
nearly 5% down in extended trading.
    With electric and autonomous vehicles gaining popularity,
the company has been heavily investing in technology as well as
store infrastructure.
    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.
   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.
    For the quarter ended Dec. 31, the company reported sales of
$3.83 billion, marginally below estimates of $3.86 billion.
    O'Reilly's quarterly profit of $9.33 per share, however,
beat analysts' estimates of $9.17 per share.

 (Reporting by Raechel Thankam Job; Editing by Shinjini Ganguli)
 ((RaechelThankam.Job@thomsonreuters.com;))