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) Q4 Earnings & Revenues Beat on Strong Growth
Read MoreHide Full Article
O’Reilly Automotive, Inc. (ORLY - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $8.37, beating the Zacks Consensus Estimate of $7.71. Higher-than-expected comps growth resulted in the outperformance. Comps grew 9% in the reported quarter and topped the Zacks Consensus Estimate of 4.07%. The bottom line increased 10% from $7.64 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3.64 billion, crossing the consensus mark of $3.51 billion. The top line was 11% higher than the prior-year figure of $3.29 million.
During the quarter, the company opened 20 new stores in the United States and 14 in Mexico. The total store count was 5,971 as of Dec 31, 2022.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses flared up 11% year over year to $1.17 billion. Operating income rose 1% to $682 million from $676 million. Net income amounted to $529 million, up 2% from $519 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.5 million shares for $421 million at an average price of $786.19 per share. After the end of the quarter until the date of release, the company repurchased an additional 0.4 million shares of common stock for a total investment of $355 million at an average price of $807.84 per share. As of Feb 8, the company had nearly $1.37 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $108.5 million at the end of the reported quarter, sharply falling from $362.1 million in the year-ago quarter. Its long-term debt was $4,371.6 million, higher than the year-ago level of $3,826.9 million.
During the reported quarter, O’Reilly generated $795.2 million in cash from operating activities, up from the year-ago period’s $641.9 million. Capital expenditures totaled $174.5 million, rising from $102.1 million in the year-ago period. Free cash flow grew 20.1% to $426.4 million.
Outlook for 2023
For 2023, total revenues are expected to be in the range of $15.2-$15.5 billion. Earnings per share are expected between $35.75 and $36.25. The forecast for comparable store sales growth is in the range of 4-6%. The free cash flow projection is in the band of $1.8-$2.1 billion. Capital expenditures are expected within the range of $750-$800 million. The company intends to open 180-190 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #3 (Hold)
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and BMW AG (BAMXF - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures, and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
BMW is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
Image: Bigstock
O'Reilly (ORLY) Q4 Earnings & Revenues Beat on Strong Growth
O’Reilly Automotive, Inc. (ORLY - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $8.37, beating the Zacks Consensus Estimate of $7.71. Higher-than-expected comps growth resulted in the outperformance. Comps grew 9% in the reported quarter and topped the Zacks Consensus Estimate of 4.07%. The bottom line increased 10% from $7.64 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3.64 billion, crossing the consensus mark of $3.51 billion. The top line was 11% higher than the prior-year figure of $3.29 million.
During the quarter, the company opened 20 new stores in the United States and 14 in Mexico. The total store count was 5,971 as of Dec 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 reported quarter, selling, general and administrative expenses flared up 11% year over year to $1.17 billion. Operating income rose 1% to $682 million from $676 million. Net income amounted to $529 million, up 2% from $519 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.5 million shares for $421 million at an average price of $786.19 per share. After the end of the quarter until the date of release, the company repurchased an additional 0.4 million shares of common stock for a total investment of $355 million at an average price of $807.84 per share. As of Feb 8, the company had nearly $1.37 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $108.5 million at the end of the reported quarter, sharply falling from $362.1 million in the year-ago quarter. Its long-term debt was $4,371.6 million, higher than the year-ago level of $3,826.9 million.
During the reported quarter, O’Reilly generated $795.2 million in cash from operating activities, up from the year-ago period’s $641.9 million. Capital expenditures totaled $174.5 million, rising from $102.1 million in the year-ago period. Free cash flow grew 20.1% to $426.4 million.
Outlook for 2023
For 2023, total revenues are expected to be in the range of $15.2-$15.5 billion. Earnings per share are expected between $35.75 and $36.25. The forecast for comparable store sales growth is in the range of 4-6%. The free cash flow projection is in the band of $1.8-$2.1 billion. Capital expenditures are expected within the range of $750-$800 million. The company intends to open 180-190 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #3 (Hold)
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and BMW AG (BAMXF - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures, and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
BMW is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
You can see the complete list of today’s Zacks #1 Rank stocks here.