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Why Is O'Reilly Automotive (ORLY) Up 2.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? 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 drivers.
O'Reilly Reports Impressive Q4 Results
O’Reilly reported fourth-quarter 2021 adjusted earnings per share of $7.64, surpassing the Zacks Consensus Estimate of $6, led by growth in comparable store sales. Comps grew 14.5% year over year in the quarter, topping the Zacks Consensus Estimate of comps growth of 4.83%. The bottom line also increased from $5.40 a share recorded in the prior-year quarter.
This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3,291.5 million, beating the consensus mark of $3,066.7 million. The top line was also 16.36% higher than the prior-year figure of $2,828.8 million. During the quarter, the company opened 19 new stores in the United States and 25 in Mexico, bringing the total store count to 5,784 as of Dec 31, 2021.
Financials, Share Repurchase & Costs
In the December quarter, selling, general and administrative expenses flared up 13% year over year to $1,058.6 million. Nonetheless, operating income edged up 27% to $676 million from $534 million on higher sales. Net income amounted to $519 million, up 32% from $393 million generated in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.7 million shares for $469 million at an average price of $637.15 per share. As of Feb 09, 2022, the company had $1.79 billion remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $362.1 million as of Dec 31, 2021. Its long-term debt was $3,827 million, lower than the year-ago level of $4,123.2 million.
During the reported quarter, O’Reilly generated $642 million in cash from operating activities compared with the year-ago period’s $487.4 million. Capital expenditure totaled $102.2 million, almost on par with the year-ago quarter. Free cash flow rose 13% to $355 million.
Outlook for 2022
ORLY projects total revenues within the range of $14.2-$14.5 billion. Earnings per share are envisioned within the band of $32.35-$32.85. It forecasts comparable store sales growth within 5-7%. Also, it envisions free cash flow in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 million
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 10.64% 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. Notably, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is O'Reilly Automotive (ORLY) Up 2.6% Since Last Earnings Report?
A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? 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 drivers.
O'Reilly Reports Impressive Q4 Results
O’Reilly reported fourth-quarter 2021 adjusted earnings per share of $7.64, surpassing the Zacks Consensus Estimate of $6, led by growth in comparable store sales. Comps grew 14.5% year over year in the quarter, topping the Zacks Consensus Estimate of comps growth of 4.83%. The bottom line also increased from $5.40 a share recorded in the prior-year quarter.
This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3,291.5 million, beating the consensus mark of $3,066.7 million. The top line was also 16.36% higher than the prior-year figure of $2,828.8 million. During the quarter, the company opened 19 new stores in the United States and 25 in Mexico, bringing the total store count to 5,784 as of Dec 31, 2021.
Financials, Share Repurchase & Costs
In the December quarter, selling, general and administrative expenses flared up 13% year over year to $1,058.6 million. Nonetheless, operating income edged up 27% to $676 million from $534 million on higher sales. Net income amounted to $519 million, up 32% from $393 million generated in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.7 million shares for $469 million at an average price of $637.15 per share. As of Feb 09, 2022, the company had $1.79 billion remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $362.1 million as of Dec 31, 2021. Its long-term debt was $3,827 million, lower than the year-ago level of $4,123.2 million.
During the reported quarter, O’Reilly generated $642 million in cash from operating activities compared with the year-ago period’s $487.4 million. Capital expenditure totaled $102.2 million, almost on par with the year-ago quarter. Free cash flow rose 13% to $355 million.
Outlook for 2022
ORLY projects total revenues within the range of $14.2-$14.5 billion. Earnings per share are envisioned within the band of $32.35-$32.85. It forecasts comparable store sales growth within 5-7%. Also, it envisions free cash flow in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 million
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 10.64% 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. Notably, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.