Auto parts retailers like large cap O'Reilly Automotive Inc (NASDAQ: ORLY) and mid cap Advance Auto Parts, Inc (NYSE: AAP) along with small cap auto parts stock Federal-Mogul Corp (NASDAQ: FDML) have been a bright spot on the economy as consumers try to stretch the lives of their automobiles or vehicles in the bad or uncertain economy. In fact, Investors Business Daily has recently noted that the average age of cars on the road is about 11.5 years and that's of course good news for auto parts retailers while any uptick in sales or production of auto parts in general will be good for companies like Federal-Mogul Corp. With that in mind, here is a look at how these three auto parts retailers or auto parts stocks are taking investors for a ride in a good way:
O'Reilly Automotive Inc. Founded in 1957 by the O'Reilly family, O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional service provider markets. As of June 30, the company operated 4,087 stores in 42 states. Yesterday, O'Reilly Automotive reported an 8% revenue increase to $1.73 billion while net income increased 17% to $186 million for the 19th consecutive quarter of 15% or greater adjusted diluted earnings per share growth. O'Reilly Automotive is on target to open 190 net new stores in 2013 and plans to increase new store growth in 2014 to 200 new stores. In addition, the company has $360 million remaining under its current share repurchase authorization. However, it should also be mentioned that O'Reilly Automotive's cash tends to be locked in inventories while current and long term liabilities has been steadily increasing over the past few quarters according to Google Finance data – something investors should keep an eye on. In addition, many of its stores are concentrated in certain regions of the country which could make the country vulnerable to economic fluctuations in those regions. On Wednesday, large cap O'Reilly Automotive rose 0.40% to $134.31 (ORLY has a 52 week trading range of $79.24 to $135.62 a share) for a market cap of $14.58 billion plus the stock is up 52.4% since the start of the year, up 66.7% over the past year and up 497.7% over the past five years.
Advance Auto Parts, Inc. Founded in 1932 and now a leading automotive aftermarket retailer of parts, accessories, batteries and maintenance items in the United States, Advance Auto Parts serves both the do-it-yourself and professional installer markets. The company operates over 3,900 stores in 39 states, Puerto Rico and the Virgin Islands. Last week, Advance Auto Parts soared 24% after it announced a $2.04 billion all cash deal to buy General Parts International - a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the Carquest and Worldpac brands. The deal will create the largest automotive aftermarket parts provider in North America with combined sales of over $9.2 billion thanks to the addition of 1,246 company operated stores and 1,418 independently owned CARQUEST locations. The company also announced preliminary results for the third quarter saying it expects to earn $1.42 a share on $1.52 billion in revenue for a 17% profit increase from last year and a 4% sales increase. Otherwise, Advance Auto Parts is scheduled to report earnings before the market open on Thursday, October 31. On Wednesday, mid cap Advance Auto Parts rose 1.06% to $99.77 (AAP has a 52 week trading range of $65.07 to $99.84 a share for a market cap of $7.27 billion plus the stock is up 39.5% since the start of the year, up 45.8% over the past year and up 261.7% over the past five years.
Federal-Mogul Corp. Founded in 1899, Federal-Mogul Corp is a global supplier of products, brands and solutions to manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail and industrial. Federal-Mogul Corp operates with two business segments (the powertrain segment and the vehicle components segment) which each having a CEO reporting to Federal-Mogul's Board of Directors. Yesterday, Federal-Mogul Corp surged after it reported a 9% revenue increase to $1.69 billion and swung back into profit with net income of $38 million after a series of losses last year and into this year. The reversal came about thanks to a 12% rise in European sales due to market share gains, increased engine exports and acquisition and distribution agreements plus North American sales rose 6% while sales in the rest of the world rose 7%. Federal-Mogul Corp's co-CEO and CEO Powertrain Segment commented in the press release that the company's performance was also helped by progress on restructuring in Western Europe and the US along with increasing operational efficiency and ongoing cost reductions. On Wednesday, small cap Federal-Mogul Corp surged 24.3% to $19.44 (FDML has a 52 week trading range of $4.80 to $19.50 a share) for a market cap of $2.92 billion plus the stock is up 148.6% since the start of the year, up 131.3% over the past year and up 173.4% over the past five years.
Finally, here is a look at the performance of all three auto parts retailer or auto parts stocks:
It appears that O'Reilly Automotive has been the best performing auto parts retailer or auto parts stock over the long term but Advance Auto Parts has also put in a steady long-term performance while Federal-Mogul Corp has given investors a bit of a bumpy ride.
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