Shares of auto parts retailer O'Reilly Automotive (NASDAQ: ORLY) sank on Thursday after the company reported financial results for the first quarter of 2024. As of noon ET, O'Reilly stock was down 4% but it had been down as much as 8% earlier in the day.

I readily admit that the negative reaction to O'Reilly's financial results from investors is a head-scratcher. Many headlines say that O'Reilly stock is down because of disappointment regarding its profit outlook. However, the company raised its outlook for profits today. Therefore, that explanation doesn't seem to hold water.

To be clear, the numbers looked good for O'Reilly. The company's sales increased 7% year over year to nearly $4 billion, bolstered by strong same-store sales growth of over 3%. Moreover, its net income was up 6% to $547 million.

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Source Fool.com