O'Reilly Automotive Cuts FY22 Outlook As Q2 Earnings Falls Short

O’Reilly Automotive Inc ORLY reported second-quarter FY22 sales growth of 6% year-on-year to $3.67 billion, missing the consensus of $3.71 billion.
Comparable store sales rose 4.3% versus last year and increased 30.4% on a three-year stack basis.
The gross profit increased 3.2% Y/Y to $1.88 billion, and the gross margin contracted 140 basis points to 51.3%.
The operating margin compressed 120 basis points to 21.8%, and operating income for the quarter rose 0.4% to $798.5 million.
The company held $253.9 million in cash and equivalents as of June 30, 2022. Cash provided by operating activities year-to-date totaled $1.4 billion.
EPS of $8.78 missed the analyst consensus of $8.99.
Outlook: O’Reilly reduced its FY22 sales outlook to $14 billion - $14.3 billion (prior $14.2 billion - $14.5 billion), against the consensus of $14.29 billion.
The company expects FY22 EPS of $31.25 - $31.75 (prior $32.35 - $32.85) versus the consensus of $32.92.
The company reduced its full-year comparable store sales guidance to 3% - 5% (prior 5% - 7%).
Price Action: ORLY shares are trading lower by 3.54% at $665.01 in premarket on the last check Thursday.

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