We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is O'Reilly Automotive (ORLY) Up 2.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month 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 Snaps Earnings Beat Run in Q1
O’Reilly 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, O'Reilly Automotive has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is O'Reilly Automotive (ORLY) Up 2.6% Since Last Earnings Report?
It has been about a month 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 Snaps Earnings Beat Run in Q1
O’Reilly 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, O'Reilly Automotive has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.