This is important because Group 1 gets almost one-third of sales from Texas, where there was great concern that lower oil prices might cause a drop in car sales. Rest assured, they have not stopped buying cars in Texas!
Not just car companies doing well. The people selling parts are also performing. O'Reilly Automotive easily beat estimates and posted a strong 6.3 percent comparable store sale. 2015 guidance of 3 to 5 percent comparable store sales is also solid.
O'Reilly, by the way is one of the most aggressive buyers of their own share. In 2011, for example, they had roughly 140 million common shares outstanding. At the end of 2014, it was closer to 102 million, a decline of more than 25 percent.
That is a significant improvement to the bottom line. For example, the 2015 guidance of $8.20 to $8.35 works off the 2014 level of common shares; when adjusted for proposed additional share repurchases in 2015, the guidance becomes $8.35 to $8.45, according to Wedbush.
O'Reilly Automotive (common shares outstanding)
- 2011: 140 million
- 2014: 102 million