O'Reilly Automotive, Inc. (ORLY) has reported a 3.74 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $264.93 million, or $2.83 a share in the quarter, compared with $255.37 million, or $2.59 a share for the same period last year. Revenue during the quarter went up marginally by 2.87 percent to $2,156.26 million from $2,096.15 million in the previous year period. Gross margin for the quarter expanded 10 basis points over the previous year period to 52.46 percent. Total expenses were 81.30 percent of quarterly revenues, up from 80.03 percent for the same period last year. That has resulted in a contraction of 127 basis points in operating margin to 18.70 percent.
Operating income for the quarter was $403.16 million, compared with $418.63 million in the previous year period.
Based on mild January temperatures and the headwind that created in our business, we reduced our quarterly comparable store sales guidance for the first quarter to 2% to 4%. The unseasonal weather continued in February, and the absence of typical spring weather in many of our markets in March, combined with the dislocation of tax refunds, continued to create headwinds for the remainder of the quarter. We believe these headwinds were the primary drivers of our below expectation comparable store sales of 0.8%." commented Greg Henslee, O’Reilly’s chief executive officer.
For financial year 2017, O'Reilly Automotive, Inc. forecasts revenue to be in the range of $9,100 million to $9,300 million. The company forecasts operating income to grow in the range of 20.10 percent to 20.50 percent. It company expects diluted earnings per share to be in the range of $12.05 to $12.15.
For the second-quarter 2017, O'Reilly Automotive, Inc. expects diluted earnings per share to be in the range of $3.10 to $3.20.
Operating cash flow drops significantly
O'Reilly Automotive, Inc. has generated cash of $376.70 million from operating activities during the quarter, down 25.13 percent or $ 126.42 million, when compared with the last year period.
The company has spent $111.02 million cash to meet investing activities during the quarter as against cash outgo of $102.06 million in the last year period. It has incurred capital expenditure of $110.39 million on net basis during the quarter, up 7.06 percent or $7.28 million from year ago period.
The company has spent $384.74 million cash to carry out financing activities during the quarter as against cash inflow of $198.65 million in the last year period.
Cash and cash equivalents stood at stood at $27.54 million as at Mar. 31, 2017.
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