Auto parts stocks were notable decliners on Wednesday after O'Reilly
Automotive Inc (NASDAQ: ORLY) reported a second-quarter
comp sales results, which included a disappointing comp sales and a cautious outlook.
Comparable-store sales rose just 1.7 percent, notably short of the company's own guidance of 3–5 percent, the company said in a press release. This is a surprise
to investors as the company exited the first quarter on a positive note and April saw improved sales trends — only to face a "more
challenging sales environment than we expected for the remainder of the quarter."
The company's comparable-store sales miss will now impact its operating profitability moving forward, the company added.
Nevertheless, management remains "confident in the long-term health of our industry and our team's ability to provide exceptional
customer service and take market share in this challenging demand environment."
But investors aren't nearly as confident as shares of O'Reilly sank more than
20 percent and hit a new multi-year low of $175.44 Wednesday morning. Shares haven't traded below the $200 per share mark since
early 2015.
O'Reilly's poor performance and cautionary outlook had a ripple-effect across the entire auto parts sector:
- Shares of Advance Auto Parts, Inc. (NYSE: AAP)
lost more than 13 percent and hit a new 52-week low of $101.57.
- Shares of AutoZone, Inc. (NYSE: AZO) lost nearly
10 percent and hit a new 52-week low of $515.84.
- Shares of Genuine Parts Company (NYSE: GPC) lost
nearly 5 percent.
At time of publication, shares of O'Reilly were down 20.59 percent at $174.98.
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Is One Of The Steadiest Performers In Auto-Parts Retail Space
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