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O'Reilly (ORLY) to Report Q1 Earnings: Here's What to Expect
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O’Reilly Automotive (ORLY - Free Report) is slated to release first-quarter 2023 results on Apr 26, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $7.99 and $3.56 billion, respectively.
For the first quarter, the consensus estimates for O’Reilly’s earnings per share have moved down by 2 cents in the past 60 days. Its bottom-line estimates imply 11.44% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for ORLY's quarterly revenues suggests a year-over-year increase of 8.05%. Over the trailing four quarters, O’Reilly surpassed earnings estimates on two occasions and missed the same twice, the average surprise being 2.81%. This is depicted in the graph below:
In the fourth quarter of 2022, ORLY’s adjusted earnings per share of $8.37 beat the consensus metric of $7.71 and rose 10% year over year. Higher-than-expected comps growth resulted in the outperformance. The company reported net sales of $3.64 billion, topping the Zacks Consensus Estimate of $3.51 billion. The top line also rose 11% year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the automotive parts retailer for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: ORLY has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
O’Reilly’s revenue growth is impressive. The specialty retailer of automotive aftermarket parts has been generating record revenues for 30 consecutive years on the back of growth in the auto parts market and expansion of the store base. A customer-centric business model and growing demand for technologically advanced auto parts are likely to drive O’Reilly’s upcoming results.
However, the company is expected to have borne the brunt of rising SG&A expenses. The rise in SG&A costs is attributed to increased expenses for opening stores and distribution centers and maintaining the existing ones, along with efforts to provide superior customer service. ORLY expects 2023 SG&A costs per store to increase 4.5% year over year, which dims the outlook for the to-be-reported quarter. O’Reilly’s omnichannel goals are likely to have increased expenses even more, thereby clipping profit margins.
Stocks With the Favorable Combination
Let’s take a look at some players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Lear (LEA - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +5.61% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in the fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. (MBLY - Free Report) will release first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
Oshkosh (OSK - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $2.09 billion, respectively. OSK surpassed earnings estimates in one out of the trailing four quarters in the fiscal year 2022 while missing in the remaining three, the average negative surprise being 8.82%.
Image: Bigstock
O'Reilly (ORLY) to Report Q1 Earnings: Here's What to Expect
O’Reilly Automotive (ORLY - Free Report) is slated to release first-quarter 2023 results on Apr 26, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $7.99 and $3.56 billion, respectively.
For the first quarter, the consensus estimates for O’Reilly’s earnings per share have moved down by 2 cents in the past 60 days. Its bottom-line estimates imply 11.44% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for ORLY's quarterly revenues suggests a year-over-year increase of 8.05%. Over the trailing four quarters, O’Reilly surpassed earnings estimates on two occasions and missed the same twice, the average surprise being 2.81%. This is depicted in the graph below:
O'Reilly Automotive, Inc. Price and EPS Surprise
O'Reilly Automotive, Inc. price-eps-surprise | O'Reilly Automotive, Inc. Quote
Q4 Highlights
In the fourth quarter of 2022, ORLY’s adjusted earnings per share of $8.37 beat the consensus metric of $7.71 and rose 10% year over year. Higher-than-expected comps growth resulted in the outperformance. The company reported net sales of $3.64 billion, topping the Zacks Consensus Estimate of $3.51 billion. The top line also rose 11% year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the automotive parts retailer for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: ORLY has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
O’Reilly’s revenue growth is impressive. The specialty retailer of automotive aftermarket parts has been generating record revenues for 30 consecutive years on the back of growth in the auto parts market and expansion of the store base. A customer-centric business model and growing demand for technologically advanced auto parts are likely to drive O’Reilly’s upcoming results.
However, the company is expected to have borne the brunt of rising SG&A expenses. The rise in SG&A costs is attributed to increased expenses for opening stores and distribution centers and maintaining the existing ones, along with efforts to provide superior customer service. ORLY expects 2023 SG&A costs per store to increase 4.5% year over year, which dims the outlook for the to-be-reported quarter. O’Reilly’s omnichannel goals are likely to have increased expenses even more, thereby clipping profit margins.
Stocks With the Favorable Combination
Let’s take a look at some players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Lear (LEA - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +5.61% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in the fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. (MBLY - Free Report) will release first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
The company has an Earnings ESP of +11.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh (OSK - Free Report) will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $2.09 billion, respectively. OSK surpassed earnings estimates in one out of the trailing four quarters in the fiscal year 2022 while missing in the remaining three, the average negative surprise being 8.82%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.