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O'Reilly's (ORLY) Q1 Earnings Miss Estimates, Increase Y/Y
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O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2022 adjusted earnings per share of $7.17, missing the Zacks Consensus Estimate of $7.43. The bottom line, however, increased from $7.06 a share recorded in the prior-year quarter. This automotive parts retailer registered quarterly revenues of $3,296 million, beating the consensus mark of $3,283.3 million. The top line was also 6.6% higher than the prior-year figure of $3,090.9 million. Comps grew 4.8% year over year, topping the Zacks Consensus Estimate of 4.17%.
During the quarter, the company opened 53 new stores in the United States and two in Mexico, bringing the total store count to 5,838 as of Mar 31, 2022.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the March quarter, selling, general and administrative expenses flared up 9% year over year to $1,038.5 million. Operating income edged down 3.2% to $669.5 million from $691.1 million. Net income amounted to $482 million, down 4% from $502 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1.2 million shares for $775 million at an average price of $664.15 per share. As of Apr 27, the company had $1.12 billion remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $191.5 million as of Mar 31, 2022, sharply falling from $611 million in the year-ago quarter. Its long-term debt was $3,828 million, higher than the year-ago level of $3,824.3 million.
During the reported quarter, O’Reilly generated $690 million in cash from operating activities, down from the year-ago period’s $890.7 million. Capital expenditure totaled $104 million, increasing from $95 million. Free cash flow fell 26.6% to $579.4 million.
Outlook for 2022
For 2022, ORLY’s estimates remain unchanged from the previous view. Total revenue projections are expected within the range of $14.2-$14.5 billion. Earnings per share are pegged in the band of $32.35-$32.85. It forecasts comparable store sales growth within 5-7%. Also, free cash flow remains in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 million.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.4% over the past year.
Dorman Products has an expected earnings growth rate of 18.32% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.4% upward in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 4.4% over the past year.
The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has declined 1.8% over the past year.
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O'Reilly's (ORLY) Q1 Earnings Miss Estimates, Increase Y/Y
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2022 adjusted earnings per share of $7.17, missing the Zacks Consensus Estimate of $7.43. The bottom line, however, increased from $7.06 a share recorded in the prior-year quarter. This automotive parts retailer registered quarterly revenues of $3,296 million, beating the consensus mark of $3,283.3 million. The top line was also 6.6% higher than the prior-year figure of $3,090.9 million. Comps grew 4.8% year over year, topping the Zacks Consensus Estimate of 4.17%.
During the quarter, the company opened 53 new stores in the United States and two in Mexico, bringing the total store count to 5,838 as of Mar 31, 2022.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
O'Reilly Automotive, Inc. price-consensus-eps-surprise-chart | O'Reilly Automotive, Inc. Quote
Financials, Share Repurchase & Costs
In the March quarter, selling, general and administrative expenses flared up 9% year over year to $1,038.5 million. Operating income edged down 3.2% to $669.5 million from $691.1 million. Net income amounted to $482 million, down 4% from $502 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1.2 million shares for $775 million at an average price of $664.15 per share. As of Apr 27, the company had $1.12 billion remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $191.5 million as of Mar 31, 2022, sharply falling from $611 million in the year-ago quarter. Its long-term debt was $3,828 million, higher than the year-ago level of $3,824.3 million.
During the reported quarter, O’Reilly generated $690 million in cash from operating activities, down from the year-ago period’s $890.7 million. Capital expenditure totaled $104 million, increasing from $95 million. Free cash flow fell 26.6% to $579.4 million.
Outlook for 2022
For 2022, ORLY’s estimates remain unchanged from the previous view. Total revenue projections are expected within the range of $14.2-$14.5 billion. Earnings per share are pegged in the band of $32.35-$32.85. It forecasts comparable store sales growth within 5-7%. Also, free cash flow remains in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 million.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.4% over the past year.
Dorman Products has an expected earnings growth rate of 18.32% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.4% upward in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 4.4% over the past year.
The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has declined 1.8% over the past year.