Shares of O'Reilly Automotive Inc. fell Thursday, a day after the auto parts retailer posted a fourth-quarter outlook that missed Wall Street expectations.
THE SPARK: O'Reilly reported late Wednesday that its third-quarter net income rose 17 percent to $186 million, or $1.69 per share, which beat Wall Street expectations. But its outlook disappointed investors.
O'Reilly expects earnings between $1.27 per share and $1.31 per share for the current quarter. Analysts predicted $1.34 per share, according to FactSet.
THE ANALYSIS: Raymond James analyst Dan Wewer lowered his investment rating on the company's stock to "Market Perform" from "Strong Buy." Wewer said that after a 50 percent rise in its stock price this year, he doesn't see it going much higher in the next 12 months because of softening sales trends in the auto parts industry.
A representative from O'Reilly Automotive did not immediately respond to a request for comment.
SHARE ACTION: Down $9.39, or 7 percent, to $124.92 in afternoon trading Thursday. Its shares have traded between $80.89 and $135.62 over the past year.