- O’Reilly Automotive Cuts Full-Year EPS Forecast
- New EPS forecast: $40.75 to $41.25
- Previous forecast: $41.35 to $41.85
- Analysts’ estimate: $41.86
- Revenue Forecast Adjusted
- New revenue forecast: $16.6 billion to $16.9 billion
- Previous forecast: $16.8 billion to $17.1 billion
- Analysts’ estimate: $16.88 billion
- Operating Margin Adjusted
- New operating margin forecast: 19.6% to 20.1%
- Analysts’ estimate: 19.9%
- Gross Profit Margin Remains Unchanged
- Forecast: 51% to 51.5%
- Analysts’ estimate: 51.4%
- Cash from Operating Activities Forecast Unchanged
- Forecast: $2.7 billion to $3.1 billion
- Analysts’ estimate: $2.98 billion
- Capital Expenditure Forecast Unchanged
- Forecast: $900 million to $1.0 billion
- Analysts’ estimate: $966.8 million
- Second Quarter Results
- EPS: $10.55 vs. $10.22 year-over-year; Analysts’ estimate: $11.00
- Sales: $4.27 billion, +5% year-over-year; Analysts’ estimate: $4.32 billion
- Comparable sales: +2.3% vs. +9% year-over-year; Analysts’ estimate: +3.08%
- Gross profit margin: 50.7% vs. 51.3% year-over-year; Analysts’ estimate: 51.4%
- Operating income: $863.3 million, +1.1% year-over-year; Analysts’ estimate: $892.8 million
- Cash from operating activities: $948.9 million, +1.2% year-over-year; Analysts’ estimate: $894.2 million
- Ending store count: 6,244, +2.8% year-over-year; Analysts’ estimate: 6,261
- Square footage: 47.50 million, +4.1% year-over-year; Analysts’ estimate: 47.44 million
- Comments from Management
- Sales trends improved in June due to strong performance in summer weather-related categories.
- Demand environment challenging, but long-term drivers for demand remain strong.
- Full-year comparable store sales guidance updated from 3.0%-5.0% to 2.0%-4.0%.
- Second quarter comparable store sales increase of 2.3% driven by solid growth in professional business.
- Analysts’ Recommendations
- 18 buys, 8 holds, 1 sell
O’Reilly Automotive on Smartkarma
Analyst coverage of O’Reilly Automotive on Smartkarma reveals a positive outlook from various research firms. Baptista Research highlights the company’s expansion into the Mexican market, citing a 3.4% comparable store sales growth in the first quarter of 2024. This growth was driven by mid-single-digit comps in Professional, showcasing consistent execution across O’Reilly’s 6,200+ stores.
Additionally, Baptista Research emphasizes O’Reilly Automotive‘s success in Canada with the acquisition of Groupe Del Vasto, contributing to robust results in the fourth quarter and full-year 2023. Value Investors Club notes O’Reilly’s position as a leading automotive aftermarket retailer with over 6,000 stores in the US and Mexico, offering a wide range of products and services for both professional and DIY customers.
A look at O’Reilly Automotive Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
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
Analysts suggest that O’Reilly Automotive is positioned well for the long term, with particularly strong outlooks in growth and resilience. With a growth score of 4, the company is forecasted to expand steadily over time, capitalizing on market opportunities and increasing its market share. Furthermore, scoring a perfect 5 in resilience means that O’Reilly Automotive is seen as being well-prepared to weather economic uncertainties and industry challenges, making it a reliable choice for investors looking for stability.
O’Reilly Automotive may not be known for its value or dividend offerings according to the Smartkarma Smart Scores, with scores of 0 and 1 respectively. However, its momentum score of 3 indicates that there is positive market sentiment and potential upward movement in the company’s performance. Overall, O’Reilly Automotive‘s strategic positioning in the automotive aftermarket parts industry, catering to both DIY customers and professional technicians, further solidifies its prospects for sustained growth and success in the long run.
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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