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.
O'Reilly (ORLY) Beats on Q3 Earnings & Revenues, Modifies View
Read MoreHide Full Article
O’Reilly Automotive, Inc. (ORLY - Free Report) reported third-quarter 2022 adjusted earnings per share of $9.17, beating the Zacks Consensus Estimate of $8.46. Higher-than-expected comps growth resulted in the outperformance. Comps grew 7.6% in the reported quarter and topped the Zacks Consensus Estimate of 4.79%.The bottom line increased 13.6% from $8.07 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,799.6 million, crossing the consensus mark of $3,713 million. The top line was 9% higher than the prior-year figure of $3,479.5 million.
During the quarter, the company opened 38 new stores in the United States and one in Mexico. The total store count was 5,938 as of Sep 30, 2022.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses flared up 6% year over year to $1,130.8 million. Operating income rose 7% to $804 million from $755 million. Net income amounted to $585 million, increasing 5% from $559 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1 million shares of its common stock for a total investment of $710 million at an average price of $683.09 per share. As of Oct 26, the company had nearly $483 million remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $67.1 million at the end of the reported quarter, sharply falling from $449.3 million in the year-ago quarter. Its long-term debt was $4,370.8 million, higher than the year-ago level of $3,826.1 million.
During the reported quarter, O’Reilly generated $961 million in cash from operating activities, up from the year-ago period’s $852.4 million. Capital expenditure totaled $159.9 million, rising from $118.1 million in the year-ago period. Free cash flow grew 9.6% to $791.5 million.
Outlook for 2022
For 2022, ORLY’s estimates have been revised. Total revenues are now expected within the range of $14.1-$14.3 billion compared with the prior guidance of $14-$14.3 billion. Earnings per share are pegged within $32.35-$32.85, up from $31.25-$31.75 estimated earlier. Forecast for comparable store sales growth has been brought up to the range of 4.5-5.5% from the previous band of 3-5%. Free cash flow projection has also been increased to the band of $1.8-$2.1 billion from the prior range of $1.3-$1.6 billion. Capital expenditures have been reduced to $550-$650 million from $650-$750 million.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Allison has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 4.34% downward over the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
O'Reilly (ORLY) Beats on Q3 Earnings & Revenues, Modifies View
O’Reilly Automotive, Inc. (ORLY - Free Report) reported third-quarter 2022 adjusted earnings per share of $9.17, beating the Zacks Consensus Estimate of $8.46. Higher-than-expected comps growth resulted in the outperformance. Comps grew 7.6% in the reported quarter and topped the Zacks Consensus Estimate of 4.79%.The bottom line increased 13.6% from $8.07 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,799.6 million, crossing the consensus mark of $3,713 million. The top line was 9% higher than the prior-year figure of $3,479.5 million.
During the quarter, the company opened 38 new stores in the United States and one in Mexico. The total store count was 5,938 as of Sep 30, 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 reported quarter, selling, general and administrative expenses flared up 6% year over year to $1,130.8 million. Operating income rose 7% to $804 million from $755 million. Net income amounted to $585 million, increasing 5% from $559 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1 million shares of its common stock for a total investment of $710 million at an average price of $683.09 per share. As of Oct 26, the company had nearly $483 million remaining under the current share-repurchase authorization.
It had cash and cash equivalents of $67.1 million at the end of the reported quarter, sharply falling from $449.3 million in the year-ago quarter. Its long-term debt was $4,370.8 million, higher than the year-ago level of $3,826.1 million.
During the reported quarter, O’Reilly generated $961 million in cash from operating activities, up from the year-ago period’s $852.4 million. Capital expenditure totaled $159.9 million, rising from $118.1 million in the year-ago period. Free cash flow grew 9.6% to $791.5 million.
Outlook for 2022
For 2022, ORLY’s estimates have been revised. Total revenues are now expected within the range of $14.1-$14.3 billion compared with the prior guidance of $14-$14.3 billion. Earnings per share are pegged within $32.35-$32.85, up from $31.25-$31.75 estimated earlier. Forecast for comparable store sales growth has been brought up to the range of 4.5-5.5% from the previous band of 3-5%. Free cash flow projection has also been increased to the band of $1.8-$2.1 billion from the prior range of $1.3-$1.6 billion. Capital expenditures have been reduced to $550-$650 million from $650-$750 million.
Zacks Rank & Key Picks
ORLY currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Allison Transmission Holdings (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Allison has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 4.34% downward over the past 30 days.