(Reuters) – Auto parts distributor O’Reilly Automotive missed analysts’ estimates for first-quarter profit on Wednesday, hurt by increased costs, sending its shares down more than 3% after the bell.
Investments in store expansion and securing higher quality and technologically advanced products amid growing popularity of electric vehicles has significantly driven up expenses for the company.
Auto parts sellers were also hit by tough weather conditions, hurting sales during the start of the year.
O’Reilly forecast its capital expenditure for 2024 to range between $900 million and $1.0 billion and plans to open 190 to 200 stores in the year.
Its comparable sales rose 3.4% in the first quarter, versus 10.8% growth a year earlier.
The Springfield, Missouri-based company posted adjusted profit of $9.20 per share, compared with analysts’ average estimate of $9.26 per share, according to LSEG data.
The company reported sales of $3.980 billion for the quarter ended March 31, mostly in line with estimates.
It forecast 2024 adjusted profit per share to be between $41.35 and $41.85, below analysts’ estimate of $42.42 per share.
(Reporting by Raechel Thankam Job and Aatreyee Dasgupta; Editing by Shilpi Majumdar)
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