O'Reilly Automotive (NASDAQ: ORLY) reported Q1 EPS of $2.59, $0.10 better than the analyst estimate of $2.49. Revenue for the quarter came in at $2.1 billion versus the consensus estimate of $2.06 billion.

First quarter comparable store sales increase of 6.1%.

Commenting on the Company’s first quarter results, O’Reilly’s President and CEO, Greg Henslee stated, “We are very proud to report a strong start to 2016, highlighted by a 6.1% increase in comparable store sales, which represents our 10th consecutive quarter of comparable store sales growth greater than 5%, and a 26% increase in first quarter diluted earnings per share to $2.59, which is our 29th consecutive quarter of diluted earnings per share growth greater than 15%. As we previously discussed, our first quarter 2016 results included one additional day due to Leap Day, which is excluded from our comparable store sales results, but benefited our first quarter EPS by approximately $0.05 per share. Our consistently strong performance is the direct result of the unwavering commitment of our over 73,000 Team Members dedicated to providing excellent customer service, and I would like to thank each of our hard working Team Members for our strong first quarter performance and their relentless focus on our long-term success.”

Mr. Henslee continued, “As we have commented on in the past, our gross margin results can face headwinds relating to merchandise acquisition cost improvements, which is a positive driver to our long-term gross margin expansion, but can create short term pressure on our gross margin results due to reducing our inventory value to the lower acquisition cost in accordance with our LIFO accounting. Our second quarter earnings per share guidance includes an expected non-cash impact from a specific new supplier contract resulting in LIFO headwinds of approximately $23 million. While this item impacts our second quarter gross margin expectations, we still anticipate full-year gross margin to be within our previously guided range of 52.3% to 52.7% of sales as our gross margin benefits from these cost reductions for the remainder of 2016.”

GUIDANCE:

Sees Q2 EPS of $2.54-$2.64, versus the consensus of $2.77. Sees FY 2016 EPS of $10.10-$10.50 versus the consensus of $10.68.

For earnings history and earnings-related data on O'Reilly Automotive (ORLY) click here.