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O’Reilly Automotive, Inc. (ORLY - Free Report) reported second-quarter 2023 adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.05. The bottom line increased from $8.78 in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $4,069 million, crossing the Zacks Consensus Estimate of $3,990 million. The top line increased 11% year over year.
During the quarter, comps grew 9% due to robust DIY comparable store sales growth. The company opened 42 new stores in the United States and Mexico. The total store count was 6,071 as of Jun 30, 2023.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses flared up 14% year over year to $1,232.8 million. Operating income rose 7% to $854 million from $799 million. Net income amounted to $627 million, up 9% from $577 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.8 million shares for $680 million at an average price of $904.37 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.1 million shares of common stock for a total investment of $119 million at an average price of $952.24 per share. As of Jul 26, the company had nearly $1.81 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $57.9 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $4,873.7 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $937.6 million in cash from operating activities, up from the year-ago period’s $702.1 million. Capital expenditures totaled $237.7 million, rising from $124.9 million in the year-ago period. Free cash flow expanded by 18.7% to $681.2 million.
Revised Outlook for 2023
For 2023, total revenues are now expected to be in the range of $15.4-$15.7 billion, up from the prior guidance of $15.2-$15.5 billion.
Earnings per share are now expected between $37.05 and $37.55, up from the previous estimate of $36.5-$37.
The forecast for comparable store sales growth has been revised up to 5-7%, from the previously guided range of 4-6%.
Now, the free cash flow is projected in the band of $1.9-$2.2 billion, up from the previously guided range of $1.8-$2.1 billion.
Capital expenditures are expected within the range of $750-$800 million, the same as the previously guided range. The company intends to open 180-190 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Ford Motor Company (F - Free Report) , Oshkosh Corporation (OSK - Free Report) and Lear Corporation (LEA - Free Report) . While F and OSK each sport a Zacks Rank #1 (Strong Buy), LEA carries a Zacks Rank #2.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 4.9%. The 2023 EPS estimate has been revised upward by 5 cents in the past seven days. The EPS estimate for 2024 has moved north by 5 cents in the past seven days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 7.2% and 282.9%, respectively. The EPS estimate for 2023 has moved up by a cent in the past seven days. The 2024 EPS estimate has remained unchanged in the past seven days.
The Zacks Consensus Estimate for LEA’s 2023 sales and earnings implies year-over-year growth of 16% and 80.5%, respectively. The EPS estimate for 2023 has moved north by 25 cents in the past seven days. The 2024 EPS estimate has moved up by 8 cents in the past seven days.
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O'Reilly (ORLY) Q2 Earnings Beat Estimates, '23 View Raised
O’Reilly Automotive, Inc. (ORLY - Free Report) reported second-quarter 2023 adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.05. The bottom line increased from $8.78 in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $4,069 million, crossing the Zacks Consensus Estimate of $3,990 million. The top line increased 11% year over year.
During the quarter, comps grew 9% due to robust DIY comparable store sales growth. The company opened 42 new stores in the United States and Mexico. The total store count was 6,071 as of Jun 30, 2023.
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 14% year over year to $1,232.8 million. Operating income rose 7% to $854 million from $799 million. Net income amounted to $627 million, up 9% from $577 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.8 million shares for $680 million at an average price of $904.37 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.1 million shares of common stock for a total investment of $119 million at an average price of $952.24 per share. As of Jul 26, the company had nearly $1.81 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $57.9 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $4,873.7 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $937.6 million in cash from operating activities, up from the year-ago period’s $702.1 million. Capital expenditures totaled $237.7 million, rising from $124.9 million in the year-ago period. Free cash flow expanded by 18.7% to $681.2 million.
Revised Outlook for 2023
For 2023, total revenues are now expected to be in the range of $15.4-$15.7 billion, up from the prior guidance of $15.2-$15.5 billion.
Earnings per share are now expected between $37.05 and $37.55, up from the previous estimate of $36.5-$37.
The forecast for comparable store sales growth has been revised up to 5-7%, from the previously guided range of 4-6%.
Now, the free cash flow is projected in the band of $1.9-$2.2 billion, up from the previously guided range of $1.8-$2.1 billion.
Capital expenditures are expected within the range of $750-$800 million, the same as the previously guided range. The company intends to open 180-190 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Ford Motor Company (F - Free Report) , Oshkosh Corporation (OSK - Free Report) and Lear Corporation (LEA - Free Report) . While F and OSK each sport a Zacks Rank #1 (Strong Buy), LEA carries a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 4.9%. The 2023 EPS estimate has been revised upward by 5 cents in the past seven days. The EPS estimate for 2024 has moved north by 5 cents in the past seven days.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 7.2% and 282.9%, respectively. The EPS estimate for 2023 has moved up by a cent in the past seven days. The 2024 EPS estimate has remained unchanged in the past seven days.
The Zacks Consensus Estimate for LEA’s 2023 sales and earnings implies year-over-year growth of 16% and 80.5%, respectively. The EPS estimate for 2023 has moved north by 25 cents in the past seven days. The 2024 EPS estimate has moved up by 8 cents in the past seven days.