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Investing.com -- O’Reilly Automotive Inc (NASDAQ:ORLY) reported record earnings for the second quarter of 2025, but issued revenue guidance that came in slightly below Wall Street expectations, prompting a modest 0.9% postmarket dip in shares. Despite delivering double-digit earnings growth and robust comps, investor sentiment clipped gains on cautious full-year outlooks.
Revenue for the quarter rose to $4.53 billion, a 6% increase from $4.27 billion in the same period a year earlier. Comparable store sales advanced 4.1% year over year, up from 2.3% in the prior-year period, as both professional and DIY segments delivered solid performances.
Net income increased 7% to $669 million, while diluted earnings per share gained 11% to $0.78, buoyed by a lower share count following aggressive repurchases. Gross profit margins expanded to 51.4%, up from 50.7% a year earlier, underscoring improved operating efficiency.
“I would like to thank our Team of over 92,000 Professional Parts People for their tremendous hard work and commitment to providing industry-leading customer service,” said CEO Brad Beckham. “Team O’Reilly’s dedication was reflected in our strong top-line performance this quarter with a comparable store sales increase of 4.1%, driven by solid growth in both professional and DIY.”
Despite the positive quarterly report, the company’s full-year revenue guidance of $17.5 billion to $17.8 billion fell short of analyst estimates, which hovered near $17.94 billion. Its updated EPS guidance of $2.85 to $2.95 matched consensus expectations.
O’Reilly remained bullish on its store expansion strategy, opening 105 net new stores across 34 U.S. states, Puerto Rico, and Mexico in the first half of the year. “As a result of our solid performance in the first half of 2025, we are increasing our full-year comparable store sales guidance to a range of 3% to 4.5%,” Beckham said.
The company repurchased 6.8 million shares in the quarter at an average price of $90.71, spending $617 million and underscoring continued confidence in long-term growth. Total (EPA:TTEF) buybacks for the first half of the year reached 13.3 million shares for $1.18 billion, contributing to the 11% year-on-year EPS growth.
O’Reilly projects gross margins between 51.2% and 51.7% for the full year and operating income margins of 19.2% to 19.7%. Free cash flow is expected to land between $1.6 billion and $1.9 billion, supporting ongoing capital expenditures and shareholder returns.