O'Reilly Automotive (ORLY - Analyst Report) has a solid
history of positive earnings surprises and sees more earnings
growth for 2013. The stock is a Zacks #2 Rank (Buy).
O'Reilly Automotive sells automotive aftermarket parts, tools,
supplies, equipment and accessories. The company provides new and
remanufactured automotive hard parts, including alternators,
starters, fuel pumps, water pumps, brake system components,
batteries, belts, hoses, temperature control and chassis parts.
Its stores also offer auto body paint and related materials,
automotive tools, and professional service provider service
equipment. As of December 31, 2011, it operated 3,740 stores in 39
states. The company was founded in 1957 and is headquartered in
O'Reilly Automotive Beats Estimates in Six of Seven
O'Reilly Automotive topped the Zacks Consensus
Estimate in six of the last seven quarters. The average beat,
including the quarter in line with expectations, of
$0.07 translates to approximately 8.5% positive earnings
stock has moved higher by an average of about 2% following the
The September 2011 quarter had the largest impact on share price.
The Zacks Consensus
Estimate of $1.00 was beat by 10% or $0.10. This caused the stock
to increase by more than 7% in the session following the earnings
release. The quarter prior saw the company report earnings in
line with expectations but was a little light on the topline.
That top line miss helped push the stock lower by more than 4% in
the session following that release.
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O'Reilly Automotive Most Recent Earnings Report
On April 23, 2012 O'Reilly Automotive reported revenue of $1.529
up from $1.382
billion reported in year ago quarter, an increase of 11%.
share came in at $1.14, $0.10 higher than the Zacks Consensus
Estimate for a positive earnings surprise of 9.6%. In the session
the stock traded higher by more than 8%.
O'Reilly Automotive Sees Estimates Moving Higher
Estimates for O'Reilly Automotive have been rising of late. The
Consensus Estimate for 2012 for O'Reilly Automotive stood at $4.38
January 2012. The consensus has since moved higher to $4.68. Over
the same time period estimates for 2013 have moved from $5.01 to
$5.37. The implied earnings growth rate of more than 14% is
just what aggressive growth investors are seeking.
O'Reilly Automotive trades slightly higher than the industry
average for nearly
every metric that aggressive growth investors tend to focus.
The trailing twelve months PE of 23x is right in line with the
industry average. The forward PE of 20x is slightly higher than
the 17.7x industry average. The price to book multiple of 4.2x is
higher than the 3x industry average, and the price to sales
multiple carries a similar premium valuation.
A quick look at the price and consensus chart shows a stock that
has traced the consistent growth of the earnings estimates. This
is the type of chart that aggressive growth investors love to see.
The earnings estimates have guided the stock higher and the gaps
between the earnings lines are the embodiment of the growth in
earnings. The 2013 earnings estimate line should inspire investors
as the line continues to move higher, which will likely help the
stock higher in the future. O'Reilly Automotive is a
Zacks #2 Rank (Buy).
Brian Bolan is the Aggressive Growth Stock Strategist
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
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