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O'Reilly Automotive (ORLY) Down 3.3% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
O'Reilly's Q1 Earnings Beat on Stellar Comps Growth
O’Reilly first-quarter 2021 earnings per share of $7.06, surpassing the Zacks Consensus Estimate of $5.36. Remarkable comparable store sales growth drove this outperformance. Comps grew 24.8% year over year for the quarter, outpacing the Zacks Consensus Estimate of 10.83%. The bottom line also increased 77.8% from $3.97 a share recorded in the prior-year quarter.
This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3091 million, which topped the consensus mark of $2,787 million. Moreover, the top line was higher than the prior-year level of $2,476.5 million.
In addition, the company opened 68 new stores (five domestic and one in Mexico) during the first quarter, bringing the total store count to 5,682 as of Mar 31, 2021, beating the Zacks Consensus Estimate of 5,643.
Financials, Share Repurchase & Costs
For the March-end quarter, selling, general and administrative expenses flared up 8.8% year on year to $949.7 million. Nonetheless, operating income shot up 63.1% to $691.1 million from $423.6 million reported in the prior-year period on higher sales. Net income amounted to $501.6 million, up 67% year over year.
During the reported quarter, O’Reilly repurchased 1.5 million shares for $665 million at an average price of $450.65 per share. As of Apr 28, the company had $817 million remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $610.9 million as of Mar 31, 2021. Its long-term debt stands at $3,824.3 million, lower than the year-ago level of $4,471.2 million.
During the reported quarter, O’Reilly generated $890.7 million in cash from operating activities compared with the year-ago period’s $459 million. Capital expenditure amounted to $94.8 million compared with the year-earlier period’s $133.3 million. Free cash flow jumped to $789.8 million from the prior year’s $227.2 million.
2021 Outlook Raised
For 2021, O’Reilly now projects total revenues within $11.8-$12.1 billion, higher than the prior guided range of $11.5-$11.8 billion. Earnings per share are envisioned within $24.75-$24.95, comparing favorably with the previous view of $22.7-$22.9. Furthermore, the company now expects comparable store sales to rise 1-3% versus a decline of upto 2% projected earlier. Also, the firm now envisions free cash flow in the band of $1.1-$1.4 billion, up from the previous forecast of $1-$1.3 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 9.85% due to these changes.
VGM Scores
Currently, O'Reilly Automotive has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise O'Reilly Automotive has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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O'Reilly Automotive (ORLY) Down 3.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
O'Reilly's Q1 Earnings Beat on Stellar Comps Growth
O’Reilly first-quarter 2021 earnings per share of $7.06, surpassing the Zacks Consensus Estimate of $5.36. Remarkable comparable store sales growth drove this outperformance. Comps grew 24.8% year over year for the quarter, outpacing the Zacks Consensus Estimate of 10.83%. The bottom line also increased 77.8% from $3.97 a share recorded in the prior-year quarter.
This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3091 million, which topped the consensus mark of $2,787 million. Moreover, the top line was higher than the prior-year level of $2,476.5 million.
In addition, the company opened 68 new stores (five domestic and one in Mexico) during the first quarter, bringing the total store count to 5,682 as of Mar 31, 2021, beating the Zacks Consensus Estimate of 5,643.
Financials, Share Repurchase & Costs
For the March-end quarter, selling, general and administrative expenses flared up 8.8% year on year to $949.7 million. Nonetheless, operating income shot up 63.1% to $691.1 million from $423.6 million reported in the prior-year period on higher sales. Net income amounted to $501.6 million, up 67% year over year.
During the reported quarter, O’Reilly repurchased 1.5 million shares for $665 million at an average price of $450.65 per share. As of Apr 28, the company had $817 million remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $610.9 million as of Mar 31, 2021. Its long-term debt stands at $3,824.3 million, lower than the year-ago level of $4,471.2 million.
During the reported quarter, O’Reilly generated $890.7 million in cash from operating activities compared with the year-ago period’s $459 million. Capital expenditure amounted to $94.8 million compared with the year-earlier period’s $133.3 million. Free cash flow jumped to $789.8 million from the prior year’s $227.2 million.
2021 Outlook Raised
For 2021, O’Reilly now projects total revenues within $11.8-$12.1 billion, higher than the prior guided range of $11.5-$11.8 billion. Earnings per share are envisioned within $24.75-$24.95, comparing favorably with the previous view of $22.7-$22.9. Furthermore, the company now expects comparable store sales to rise 1-3% versus a decline of upto 2% projected earlier. Also, the firm now envisions free cash flow in the band of $1.1-$1.4 billion, up from the previous forecast of $1-$1.3 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 9.85% due to these changes.
VGM Scores
Currently, O'Reilly Automotive has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise O'Reilly Automotive has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.