O’Reilly Automotive Inc. ORLY reported a 26% increase in earnings to $2.59 per share in the first quarter of 2016 from $2.06 in the year-ago quarter. Earnings also exceeded the Zacks Consensus Estimate of $2.49. Net income improved 20% to $255 million (12.2% of sales) from $213 million (11.2% of sales) in the first quarter of 2015.Quarterly revenues went up 10% to $2.10 billion from $1.90 billion a year ago. Revenues also surpassed the Zacks Consensus Estimate of $2.06 billion. Comparable store sales increased 6.1% in the reported quarter compared with a 7.2% rise in the prior-year quarter.Gross profit rose 11% to $1.10 billion (52.4% of sales) from $987 million (51.9% of sales) a year ago. Selling, general and administrative expenses increased 7% year over year to $679 million (32.4% of sales) from $637 million (33.5% of sales). Operating income went up 19% to $419 million (20% of sales) from $350 million (18.4% of sales) a year ago.Store InformationDuring the first quarter of 2016, O’Reilly opened 52 stores across the country, in both new and existing markets. The total store count across 44 states was 4,623 as of Mar 31, 2016. Sales per weighted average-store increased to $452,000 from $429,000 in the first quarter of 2015.Share RepurchasesDuring the first quarter of 2016, O’Reilly repurchased 1.2 million shares for $313 million, reflecting an average price of $254.02. From Mar 31, 2016 through Apr 27, the company bought back an additional 0.3 million shares for $71 million, implying an average price of $270.61.Since the inception of the share repurchase program in Jan 2011, O’Reilly has repurchased a total of 52.7 million shares for $5.74 billion, indicating an average price of $108.84. As of Apr 27, 2016, the company had $509 million remaining under its current share repurchase authorization.Financial PositionO’Reilly had cash and cash equivalents of $716 million as of Mar 31, 2016, compared with $473.6 million as of Mar 31, 2015. Long-term debt was $1.9 billion as of Mar 31, 2016, compared with $1.4 billion as of Mar 31, 2015.In the first quarter of 2016, net cash flow from operations increased to $488.2 million from $406 million in the prior-year period. Meanwhile, capital expenditures rose to $103.9 million from $91.1 million in the first quarter of 2015. Free cash flow in the period was $384.2 million compared with $314.9 million in the first quarter of 2015.GuidanceFor second-quarter 2016, O’Reilly projects earnings per share in the range of $2.54–$2.64. The company expects consolidated comparable store sales to increase 3%–5%.For full-year 2016, the company expects earnings per share in the range of $10.10–$10.50. O’Reilly projects consolidated comparable store sales to increase in the range of 3%–5% during the year. The company anticipates revenues in the band of $8.4–$8.6 billion. For 2016, the gross margin guidance is pegged at 52.3%–52.7%, and operating margin is expected to be 19.3%–19.7%.O’Reilly expects capital expenditures of $460–$490 million, and free cash flow between $750 million and $800 million for the year.Zacks RankO'Reilly is a prominent player in the automotive replacement parts and accessories industry. The company currently carries a Zacks Rank #2 (Buy).Some other favorably ranked automobile stocks include Lear Corp. LEA, Federal-Mogul Holdings Corporation FDML and Superior Industries International, Inc. SUP. All three stocks sport a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report O REILLY AUTO (ORLY): Free Stock Analysis Report SUPERIOR INDS (SUP): Free Stock Analysis Report LEAR CORPORATN (LEA): Free Stock Analysis Report FEDERAL MOGUL-A (FDML): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research