O'Reilly Automotive (ORLY) Shifts into High Gear: Record Q4 and Annual Results Propel Growth
1min read O'Reilly Automotive, Inc. (NASDAQ:ORLY) unveiled its financial achievements for the fourth quarter and the entirety of 2023, setting new benchmarks in revenue and earnings. The company, renowned for its comprehensive range of automotive parts, tools, and services, demonstrated formidable growth amidst a competitive landscape.
For the closing quarter of 2023, O'Reilly celebrated a 5% increase in sales, reaching $3.83 billion, with gross profit ascending to $1.97 billion, marking a 6% increase and constituting 51.3% of total sales. Operating income mirrored this upward trajectory, growing by 5% to $719 million, or 18.8% of sales. The quarter concluded with net income climbing by 5% to $553 million, which propelled diluted earnings per share by an impressive 11% to $9.26.
The year-end figures echoed this positive momentum, with total sales surging by 10% to an impressive $15.81 billion. The gross profit saw a parallel 10% increase to $8.10 billion, maintaining a 51.3% margin of total sales. Operating income also experienced a healthy 8% rise to $3.19 billion, or 20.2% of sales, while net income for the year enhanced by 8% to $2.35 billion. This robust financial health contributed to a significant 15% increase in diluted earnings per share, reaching $38.47.
Our achievements in 2023 reflect our Team's dedication and hard work. As we move into 2024, we are confident in our Team's ability to continue our successful dual market strategy and uphold our reputation for industry-leading customer service, stated CEO Brad Beckham.
Looking ahead to 2024, O'Reilly has laid out ambitious plans, including the opening of 190 to 200 new stores, with anticipated total revenue ranging from $16.8 billion to $17.1 billion. The company aims for a gross profit margin between 51.0% and 51.5% and an operating income margin of 19.7% to 20.2%. The projected effective income tax rate is 22.6%, with diluted earnings per share estimated to fall between $41.05 and $41.55.
The company's balance sheet reflects a robust increase in total assets to $13.87 billion, up from $12.63 billion the prior year. Additionally, the completion of O'Reilly's Leadership Succession Plan saw the retirement of CEO Greg Johnson and the promotions of Brad Beckham to CEO and Brent Kirby to President, with Johnson nominated to serve on O'Reilly's Board, pending shareholder approval.
In summary, O'Reilly Automotive, Inc.'s record-setting performance in the fourth quarter and throughout 2023 underscores the company's strong growth trajectory and strategic foresight. With a clear vision for expansion and a commitment to returning value to shareholders, O'Reilly is poised for continued success in the automotive retail sector, signaling a promising outlook for 2024.