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(Reuters) – Auto Parts distributor O’Reilly (NASDAQ:) Automotive Inc forecast full-year profit below estimates on Wednesday, as expenses rise, sending its shares nearly 5% down in extended trading.
With electric and autonomous vehicles gaining popularity, the company has been heavily investing in technology as well as store infrastructure.
O’Reilly said it planned to open 190 to 200 stores in the year, and forecast 2024 capital expenditure between $900 million and $1 billion, compared with LSEG estimates of $724.3 million.
The Springfield, Missouri-based company expects full-year profit of $41.05 to $41.55 per share, below analysts’ expectation of $42.64 per share.
It expects total revenue of $16.8 billion to $17.1 billion for 2024, compared with estimates of $16.80 billion.
Volatile winter weather as well as cautious consumer spending habits during the holiday season resulted in a 3.4% rise in fourth-quarter comparable sales, compared with 9% growth a year earlier.
For the quarter ended Dec. 31, the company reported sales of $3.83 billion, marginally below estimates of $3.86 billion.
O’Reilly’s quarterly profit of $9.33 per share, however, beat analysts’ estimates of $9.17 per share.