O’Reilly Automotive Prepares for Fourth-Quarter Earnings Release
O’Reilly Automotive, Inc. (ORLY), located in Springfield, Missouri, is a prominent retailer and supplier in the automotive aftermarket sector. The company, which is valued at $69.9 billion, provides parts, tools, supplies, and equipment to a diverse customer base, including DIY enthusiasts and professional mechanics. Investors are eagerly awaiting ORLY’s fiscal fourth-quarter earnings announcement, scheduled for after the market closes on Wednesday, February 5.
Profit Expectations Rise Ahead of Earnings Report
Leading up to the earnings report, analysts predict ORLY will show a profit of $9.72 per share on a diluted basis, representing a 5% increase from $9.26 per share in the same quarter last year. Historically, the company has had mixed results, surpassing the consensus estimates in two of the last four quarters.
Annual Growth Forecasts Show Positive Trends
For the fiscal year, earnings per share (EPS) is projected at $40.85, a 6.2% increase from $38.47 in fiscal 2023. The forecast for fiscal 2025 suggests an even steeper rise, with EPS anticipated to reach $44.55, marking a 9.1% year-over-year growth.
Sustained Stock Performance Outshines Competitors
Over the past year, ORLY stock has performed strongly, gaining 27%, which surpasses the S&P 500’s growth of 22%. However, it slightly lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) impressive 27.7% increase during the same period.
Factors Behind O’Reilly’s Strength
Several factors contribute to ORLY’s success, including the growing average age of vehicles, which increases the demand for parts and maintenance services. The company’s efficient supply chain, widespread store network, and broad product range have enabled it to effectively cater to its expanding customer base.
Recent Performance Update Highlights Challenges
On October 23, ORLY’s shares dipped slightly following the release of its Q3 results. Revenue reached $4.36 billion, falling short of expectations, which called for $4.43 billion. Additionally, the reported EPS of $11.41 did not meet estimates of $11.53. For the full year, ORLY anticipates its EPS will be between $40.60 and $41.10, with overall revenue projected between $16.6 billion and $16.8 billion.
Analyst Ratings Suggest Optimism
The consensus among analysts regarding ORLY stock remains moderately bullish, reflected in an overall “Moderate Buy” rating. Out of 26 analysts following the stock, 17 recommend a “Strong Buy,” while one advises a “Moderate Buy,” and eight suggest a “Hold.” The average analyst price target stands at $1,311.45, indicating an upside potential of 8.4% from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
