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On Wednesday, shares of auto parts retailer O’Reilly Automotive (ORLY - Free Report) are plunging, down about 20% to $174.30 per share in morning trading after the company reported weak second-quarter same-store sales growth.
O’Reilly said same-store sales only grew 1.7% during the quarter, well below its projections of 3% to 5% growth, and also falling short of FactSet’s estimated guidance of an increase of 3.9%. This caused the stock to be the S&P 500’s biggest decliner so far today.
"We faced a more challenging sales environment than we expected for the remainder of the quarter," after April, O'Reilly CEO Greg Henslee said, "due to what we believe were continued headwinds from a second consecutive mild winter and overall weak consumer demand."
He added, “The comparable store sales shortfall will also have a consequent impact on our operating profitability.” The company reports its full second-quarter earnings on July 26.
O’Reilly’s disappointing performance has had a rippling effect on other auto parts stocks. Both Advance Auto Parts (AAP - Free Report) and AutoZone (AZO - Free Report) shares are down about 15% and 10%, respectively, in trading so far today.
Shares of ORLY are down over 21% year-to-date. The company currently sits at a #4 (Sell) on the Zacks Rank, with a VGM score of ‘A.’
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Here's Why O'Reilly Automotive (ORLY) Shares Plunged Today
On Wednesday, shares of auto parts retailer O’Reilly Automotive (ORLY - Free Report) are plunging, down about 20% to $174.30 per share in morning trading after the company reported weak second-quarter same-store sales growth.
O’Reilly said same-store sales only grew 1.7% during the quarter, well below its projections of 3% to 5% growth, and also falling short of FactSet’s estimated guidance of an increase of 3.9%. This caused the stock to be the S&P 500’s biggest decliner so far today.
"We faced a more challenging sales environment than we expected for the remainder of the quarter," after April, O'Reilly CEO Greg Henslee said, "due to what we believe were continued headwinds from a second consecutive mild winter and overall weak consumer demand."
He added, “The comparable store sales shortfall will also have a consequent impact on our operating profitability.” The company reports its full second-quarter earnings on July 26.
O’Reilly’s disappointing performance has had a rippling effect on other auto parts stocks. Both Advance Auto Parts (AAP - Free Report) and AutoZone (AZO - Free Report) shares are down about 15% and 10%, respectively, in trading so far today.
Shares of ORLY are down over 21% year-to-date. The company currently sits at a #4 (Sell) on the Zacks Rank, with a VGM score of ‘A.’
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2%, respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 to Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>