- O’Reilly Automotive adjusted its full-year expected earnings per share (EPS) forecast to a range of $40.60 to $41.10. Previously, the forecast was $40.75 to $41.25. The market estimate is $41.09.
- The company expects revenue of $16.6 billion to $16.8 billion, slightly narrowing from the previous range of $16.6 billion to $16.9 billion, aligning closer to the market estimate of $16.74 billion.
- Operating margin is anticipated to be between 19.4% and 19.9%. The market had estimated it at 19.8%.
- Gross profit margin expectations remain unchanged, projected between 51% and 51.5%, right around the market estimate of 51.2%.
- Expected cash from operating activities remains between $2.7 billion and $3.1 billion, with the estimate at $2.97 billion.
- Capital expenditure estimates remain steady at $900 million to $1.0 billion, with the market estimate at $950.1 million.
- For the third quarter, O’Reilly reported an EPS of $11.41, compared to $10.72 the previous year, but slightly below the estimate of $11.54.
- Sales for the quarter were $4.36 billion, a 3.8% increase year-over-year, but below the expected $4.42 billion.
- Comparable sales grew by 1.5%, below the previous year’s 8.7% and the estimated growth of 2.5%.
- The gross profit margin for Q3 was 51.6%, outperforming the previous year’s 51.4% and the estimate of 51.4%.
- Operating income slightly declined to $896.7 million, compared to $897.2 million the prior year, falling short of the estimate of $927.7 million.
- Cash from operating activities decreased by 11% year-over-year to $772.0 million, underperforming the estimate of $789 million.
- The total store count increased by 2.9% year-over-year to 6,291, slightly exceeding the estimate of 6,287.
- Total square footage increased by 3.7% year-over-year to 47.95 million, surpassing the estimated 47.79 million.
- O’Reilly has narrowed its full-year comparable store sales guidance to 2.0% to 3.0%, from 2.0% to 4.0%, reflecting current performance and future expectations.
- The company remains confident in its team and strategy to consistently execute and gain market share by focusing on superior service and parts availability.
- Analyst recommendations include 19 buys, 8 holds, and 1 sell.
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O’Reilly Automotive on Smartkarma
Analysts at Baptista Research have provided valuable insights on O’Reilly Automotive Inc.’s recent performance and expansion into the Mexican market. In a report titled “O’Reilly Automotive Inc.: What Major Challenges Did They Face & How Is The Management Overcoming Them? – Major Drivers,” the analysts highlighted the company’s challenging second quarter in 2024 due to industry demand headwinds. Despite this, O’Reilly reported a 2.3% increase in comparable store sales, outperforming the industry. Adjustments to operating profit and earnings per share outlook were made following these results.
Furthermore, in their report titled “O’Reilly Automotive Inc.: Expansion Into The Mexican Market & 5 Major Factors Driving Its Growth! – Financial Forecasts,” Baptista Research discussed O’Reilly’s 3.4% comparable store sales growth in the first quarter of 2024, driven by mid-single-digit comps in Professional. The analysts noted the company’s strong top-line sales results and consistent execution across its 6,200+ stores. O’Reilly highlighted that store volumes continued to grow, showcasing its market share gains and sustained growth over the years.
A look at O’Reilly Automotive Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
O’Reilly Automotive, Inc. is positioned for a strong long-term outlook based on the Smartkarma Smart Scores. With a solid Growth score of 4 and a top-tier Resilience score of 5, the company demonstrates promising potential for expansion and stability in the face of challenges. Additionally, its Momentum score of 4 suggests sustained positive market performance. While the Value score is at 0, indicating the stock may not be undervalued, the overall outlook remains positive due to the company’s robust fundamentals across other key factors.
O’Reilly Automotive, Inc. is a leading retailer and supplier of automotive aftermarket products in the United States. Catering to both DIY enthusiasts and professional mechanics, the company offers a wide range of parts, tools, and accessories. With a strong focus on customer service and a nationwide presence through its stores, O’Reilly is well-positioned to capitalize on the ongoing demand in the automotive sector. Investors looking for a company with high growth potential and resilience in the market may find O’Reilly Automotive an attractive option.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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