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Is a Beat in Store for O'Reilly (ORLY) This Earnings Season?

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O'Reilly Automotive, Inc. (ORLY - Free Report) is slated to release fourth-quarter 2021 results on Feb 9, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $5.96 per share on revenues of $3.07 billion.

This U.S.-based specialty retailer of automotive parts delivered better-than-anticipated results in the last reported quarter on the back of remarkable growth in comparable store sales.

Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 16.8%. This is depicted in the graph below:

O'Reilly Automotive, Inc. Price and EPS Surprise

O'Reilly Automotive, Inc. Price and EPS Surprise

O'Reilly Automotive, Inc. price-eps-surprise | O'Reilly Automotive, Inc. Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for O’Reilly’s fourth-quarter earnings per share has been revised upward by 14 cents in the past 90 days. Moreover, it compares favorably with the year-ago quarter’s earnings of $5.40 per share, indicating a year-on-year rise of 10.37%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 8.36%.

Earnings Whispers

Our proven model predicts an earnings beat for O’Reilly this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.

Earnings ESP: O’Reilly has an Earnings ESP of +1.72%. This is because the Most Accurate Estimate is pegged 11 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: O’Reilly carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

O’Reilly’s wide-ranging product portfolio serving the Do-it-Yourself (DIY) and Do-it-for-Me (DIFM) customers provides the company a competitive edge and is anticipated to have fueled its comparable-store sales growth during the fourth quarter. This, in turn, is likely to have buoyed O’Reilly’s top line during the October-December period.

The company is also likely to have gained from the opening of new stores and distribution centers in profitable regions during the to-be-reported quarter.

Further, O’Reilly’s customer-centric business model and surging demand for technologically-advanced auto parts are likely to have bolstered its sales during the December-end quarter. Robust digitization efforts are also likely to have boosted the company’s performance during the quarter in discussion.

Other Stocks With Favorable Combination

Here are a few other stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks as well:

BorgWarner (BWA - Free Report) has an Earnings ESP of +3.92% and currently carries a Zacks Rank #3. BorgWarner is slated to release quarterly numbers on Feb 15.

The Zacks Consensus Estimate for BorgWarner’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $3.46 billion, respectively. Encouragingly, BWA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 30.9%.

Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +1.45% and carries a Zacks Rank of 3 currently. Allison Transmission is set to announce quarterly figures on Feb 16.

The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at 92 cents per share and $597.9 million, respectively. ALSN surpassed earnings estimates in three of the preceding four quarters and missed once, delivering an average surprise of 3.9%.

Genuine Parts (GPC - Free Report) has an Earnings ESP of +0.31% and carries a Zacks Rank #2 at present. Genuine Parts is scheduled to report earnings results on Feb 17.

The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $4.66 billion, respectively. GPC surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 15.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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