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O'Reilly (ORLY) to Report Q4 Earnings: What's in the Cards?
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O’Reilly Automotive (ORLY - Free Report) is slated to release fourth-quarter 2022 results on Feb 8. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $7.71 and $3.51 billion, respectively.
For the fourth quarter, the consensus estimates for O’Reilly’s earnings per share have moved up by 2 cents in the past seven days. Its bottom-line estimates imply growth of 0.92% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 6.84%. Over the trailing four quarters, O’Reilly surpassed earnings estimates on two occasions and missed the same twice, with the average surprise being 7.50%. This is depicted in the graph below:
In the third quarter of 2022, ORLY’s adjusted earnings per share of $9.17 beat the consensus metric of $8.46 and rose 13.6% year over year. Higher-than-expected comps growth resulted in the outperformance. The company reported net sales of $3,799 million, topping the Zacks Consensus Estimate of $3,713 million. The top line also rose 15.6% year over year.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive parts retailer for the quarter to be reported as it has 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 +1.38%. This is because the Most Accurate Estimate is pegged 11 cents higher than the Zacks Consensus Estimate.
The increasing complexity of auto parts and repairs due to technological advances has increased traffic at independent repair shops. O’Reilly’s upcoming sales and earnings figures are likely to benefit from the demand for environmentally sustainable vehicles.
Apart from opening stores and distribution centers in profitable regions, O’Reilly has focused on opening stores in new markets, even in less-populated areas and has launched initiatives like curbside pickup for Buy Online and Pick Up In-Store orders. These strategies are likely to boost the company’s top-line performance. Furthermore, O’Reilly’s first international expansion with Mayasa Auto Parts’ buyout has bolstered its growth prospects for the to-be-reported quarter’s earnings.
On the flip side, the inefficiencies in the distribution infrastructure, difficult labor environment and global logistics challenges may have weighed on its margins in the quarter to be reported. Booming expenses from opening stores and distribution centers and maintaining the existing centers while providing superior customer service are also likely to have squeezed profits.
Other Stocks With the Favorable Combination
Let’s take a look at some other 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:
Allison Transmission Holdings (ALSN - Free Report) will release fourth-quarter 2022 results on Feb 15. The company has an Earnings ESP of +3.06% and a Zacks Rank #3.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $676 million, respectively. ALSN surpassed earnings estimates in three of the trailing four quarters and missed in one quarter, with an average surprise of 10.27%.
LKQ (LKQ - Free Report) will release fourth-quarter 2022 results on Feb 23. The company has an Earnings ESP of +3.78% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $3.01 billion, respectively. LKQ surpassed earnings estimates in all the trailing four quarters, with an average surprise of 7.96%.
Rivian Automotive (RIVN - Free Report) will release fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of +2.93% and a Zacks Rank #3.
The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss per share and revenues is pegged at $1.88 per share and $711 million, respectively. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average negative surprise being 12.63%.
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O'Reilly (ORLY) to Report Q4 Earnings: What's in the Cards?
O’Reilly Automotive (ORLY - Free Report) is slated to release fourth-quarter 2022 results on Feb 8. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $7.71 and $3.51 billion, respectively.
For the fourth quarter, the consensus estimates for O’Reilly’s earnings per share have moved up by 2 cents in the past seven days. Its bottom-line estimates imply growth of 0.92% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 6.84%. Over the trailing four quarters, O’Reilly surpassed earnings estimates on two occasions and missed the same twice, with the average surprise being 7.50%. 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
Q3 Highlights
In the third quarter of 2022, ORLY’s adjusted earnings per share of $9.17 beat the consensus metric of $8.46 and rose 13.6% year over year. Higher-than-expected comps growth resulted in the outperformance. The company reported net sales of $3,799 million, topping the Zacks Consensus Estimate of $3,713 million. The top line also rose 15.6% year over year.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive parts retailer for the quarter to be reported as it has 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 +1.38%. This is because the Most Accurate Estimate is pegged 11 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
The increasing complexity of auto parts and repairs due to technological advances has increased traffic at independent repair shops. O’Reilly’s upcoming sales and earnings figures are likely to benefit from the demand for environmentally sustainable vehicles.
Apart from opening stores and distribution centers in profitable regions, O’Reilly has focused on opening stores in new markets, even in less-populated areas and has launched initiatives like curbside pickup for Buy Online and Pick Up In-Store orders. These strategies are likely to boost the company’s top-line performance. Furthermore, O’Reilly’s first international expansion with Mayasa Auto Parts’ buyout has bolstered its growth prospects for the to-be-reported quarter’s earnings.
On the flip side, the inefficiencies in the distribution infrastructure, difficult labor environment and global logistics challenges may have weighed on its margins in the quarter to be reported. Booming expenses from opening stores and distribution centers and maintaining the existing centers while providing superior customer service are also likely to have squeezed profits.
Other Stocks With the Favorable Combination
Let’s take a look at some other 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:
Allison Transmission Holdings (ALSN - Free Report) will release fourth-quarter 2022 results on Feb 15. The company has an Earnings ESP of +3.06% and a Zacks Rank #3.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $676 million, respectively. ALSN surpassed earnings estimates in three of the trailing four quarters and missed in one quarter, with an average surprise of 10.27%.
LKQ (LKQ - Free Report) will release fourth-quarter 2022 results on Feb 23. The company has an Earnings ESP of +3.78% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $3.01 billion, respectively. LKQ surpassed earnings estimates in all the trailing four quarters, with an average surprise of 7.96%.
Rivian Automotive (RIVN - Free Report) will release fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of +2.93% and a Zacks Rank #3.
The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss per share and revenues is pegged at $1.88 per share and $711 million, respectively. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average negative surprise being 12.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.