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O'Reilly (ORLY) Q1 Earnings Exceed Estimates on Strong Comps
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O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
In the reported quarter, selling, general and administrative expenses flared up 13.5% year over year to $1.17 billion. Operating income rose 7% to $717 million from $670 million. Net income amounted to $517 million, up 7% from $482 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1.4 million shares for $1.11 billion at an average price of $819.06 per share. After the end of the quarter until the date of release, the company repurchased an additional 0.2 million shares of common stock for a total investment of $137 million at an average price of $864.44 per share. As of Apr 26, the company had nearly $475 million remaining under the current share repurchase authorization.
It had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $713.7 million in cash from operating activities, up from the year-ago period’s $689.8 million. Capital expenditures totaled $223.3 million, rising from $103.9 million in the year-ago period. Free cash flow contracted 16% to $486.1 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 $36.5 and $37. 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.
Key Releases From the Auto Space
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profit from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 billion, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.
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O'Reilly (ORLY) Q1 Earnings Exceed Estimates on Strong Comps
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
During the quarter, the company opened 58 new stores in the United States and Mexico. The total store count was 6,029 as of Mar 31, 2023. ORLY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Financials, Share Repurchase & Costs
In the reported quarter, selling, general and administrative expenses flared up 13.5% year over year to $1.17 billion. Operating income rose 7% to $717 million from $670 million. Net income amounted to $517 million, up 7% from $482 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 1.4 million shares for $1.11 billion at an average price of $819.06 per share. After the end of the quarter until the date of release, the company repurchased an additional 0.2 million shares of common stock for a total investment of $137 million at an average price of $864.44 per share. As of Apr 26, the company had nearly $475 million remaining under the current share repurchase authorization.
It had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $713.7 million in cash from operating activities, up from the year-ago period’s $689.8 million. Capital expenditures totaled $223.3 million, rising from $103.9 million in the year-ago period. Free cash flow contracted 16% to $486.1 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 $36.5 and $37. 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.
Key Releases From the Auto Space
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of $1.07 but outpaced the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%. Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
General Motors (GM - Free Report) reported first-quarter 2023 adjusted earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.64. Higher-than-expected operating profit from GMNA, GMI and Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s earnings of $2.09 per share.
Revenues of $39,985 million beat the Zacks Consensus Estimate of $38,677.9 million and increased from $35,979 million recorded in the year-ago period. However, the company recorded adjusted EBIT of $3,803 million, lower than $4,044 million in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, down from the year-ago quarter’s 9%.
PACCAR’s (PCAR - Free Report) earnings of $2.25 per share for first-quarter 2023 beat the Zacks Consensus Estimate of $1.82 and rocketed 95.6% from the year-ago figure. Higher-than-expected pretax income from Trucks, Parts and Financial Services segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $8,473.3 billion, up from $6,472.6 million recorded in the corresponding quarter of 2022.
PACCAR’s cash and marketable debt securities amounted to $5,922.2 million as of Mar 31, 2023, compared with $6,158.9 million on Dec 31, 2022. The company paid cash dividends of 25 cents per share during the reported quarter. Capex and R&D expenses for 2023 are envisioned in the band of $600-$650 million and $380-$420 million, respectively.