SPRINGFIELD (dpa-AFX) - Shares of O'Reilly Automotive Inc. (ORLY) dropped about nine percent in after-hours trade Tuesday, after the autoparts retailer indicated second-quarter earnings at the lower end of its outlook. The company also lowered its comparable store sales guidance for the quarter.
The Springfield, Missouri-based company now expects second-quarter earnings at the lower end of its previously announced guidance range of $1.13 to $1.17 per share. On average, 21 analysts polled by Thomson Reuters currently estimate earnings of $1.19 per share for the second quarter. Analysts' estimates typically exclude one-time items.
O'Reilly also lowered its second-quarter comparable store sales guidance to a range of 2 to 2.5 percent, from prior estimate of 3 to 5 percent.
O'Reilly Chief Executive Greg Henlsee said its earlier guidance reflected the slow start to the quarter in April due to the shift of some business into the first quarter as a result of the early spring weather. O'Reilly had expected sales trends to stabilize as the second quarter progressed; however, comparable store sales in June came in below its expectations, despite seeing improvement in May.
O'Reilly will release its second quarter results on July 25.
In April, O'Reilly had reported a first-quarter profit that rose 44 percent, helped by higher sales and improved margins. The company reported net income of $147.5 million or $1.14 per share, on revenues of $1.53 billion for the first quarter.
ORLY closed Tuesday's trading at $96.44, up 1.27%, on a volume of 1.2 million shares. The stock, however, lost $8.44 or 8.75% in after-hours trade.
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