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O'Reilly (ORLY) Q3 Earnings Top Estimates, Comps Grow 8.7%
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O’Reilly Automotive, Inc. (ORLY - Free Report) reported third-quarter 2023 adjusted earnings per share of $10.72, beating the Zacks Consensus Estimate of $10.36. The bottom line increased from $9.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4,203.4 million, crossing the Zacks Consensus Estimate of $4,070 million. The top line increased 10.6% year over year.
During the quarter, comps grew 8.7%. The company opened 40 new stores in the United States and Mexico. The total store count was 6,111 as of Sep 30, 2023.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses flared up 11.7% year over year to $1,263.2 million. Operating income rose to $897.2 million from $804.2 million generated in the year-ago period. Net income was roughly $650 million, up from $585.4 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.9 million shares for $800 million at an average price of $938.11 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.5 million shares of common stock for a total investment of $420 million at an average price of $910.21 per share. As of Oct 25, the company had nearly $712 million remaining under the current share repurchase authorization.
It had cash and cash equivalents of $82.6 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $5,102.3 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $866.3 million in cash from operating activities, down from the year-ago period’s $961 million. Capital expenditures totaled $293 million, rising from $159.9 million in the year-ago period. Free cash flow came in at $564.4 million, indicating a decline of 28.6% year over year.
2023 Outlook Lifted
For 2023, O’Reilly now envisions total revenues in the range of $15.7-$15.8 billion, up from the prior guidance of $15.4-$15.7 billion. Earnings per share are now expected between $37.80 and $38.30, up from the previous estimate of $37.05-$37.55. The forecast for comparable store sales growth has been revised to 7-8% from the previously guided range of 5-7%. The free cash flow guidance remains unchanged in the $1.9-$2.2 billion band. Capital expenditures are expected within the $900-$950 million range, up from the previously guided range of $750-$800 million. The company intends to open 180-190 stores this year.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 18 cents and 37 cents in the past seven days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 27.7%, respectively. The earnings estimate for fiscal 2025 has been revised upward by 5 cents in the past seven days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents in the past seven days.
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O'Reilly (ORLY) Q3 Earnings Top Estimates, Comps Grow 8.7%
O’Reilly Automotive, Inc. (ORLY - Free Report) reported third-quarter 2023 adjusted earnings per share of $10.72, beating the Zacks Consensus Estimate of $10.36. The bottom line increased from $9.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4,203.4 million, crossing the Zacks Consensus Estimate of $4,070 million. The top line increased 10.6% year over year.
During the quarter, comps grew 8.7%. The company opened 40 new stores in the United States and Mexico. The total store count was 6,111 as of Sep 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 11.7% year over year to $1,263.2 million. Operating income rose to $897.2 million from $804.2 million generated in the year-ago period. Net income was roughly $650 million, up from $585.4 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.9 million shares for $800 million at an average price of $938.11 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.5 million shares of common stock for a total investment of $420 million at an average price of $910.21 per share. As of Oct 25, the company had nearly $712 million remaining under the current share repurchase authorization.
It had cash and cash equivalents of $82.6 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $5,102.3 million, higher than $4,371.6 million as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $866.3 million in cash from operating activities, down from the year-ago period’s $961 million. Capital expenditures totaled $293 million, rising from $159.9 million in the year-ago period. Free cash flow came in at $564.4 million, indicating a decline of 28.6% year over year.
2023 Outlook Lifted
For 2023, O’Reilly now envisions total revenues in the range of $15.7-$15.8 billion, up from the prior guidance of $15.4-$15.7 billion. Earnings per share are now expected between $37.80 and $38.30, up from the previous estimate of $37.05-$37.55. The forecast for comparable store sales growth has been revised to 7-8% from the previously guided range of 5-7%. The free cash flow guidance remains unchanged in the $1.9-$2.2 billion band. Capital expenditures are expected within the $900-$950 million range, up from the previously guided range of $750-$800 million. The company intends to open 180-190 stores this year.
Zacks Rank & Other Key Picks
ORLY currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the auto space include Toyota (TM - Free Report) , Honda (HMC - Free Report) and Nissan (NSANY - Free Report) . While TM and HMC sport a Zacks Rank #1 (Strong Buy) each, NSANY carries a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 18 cents and 37 cents in the past seven days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 27.7%, respectively. The earnings estimate for fiscal 2025 has been revised upward by 5 cents in the past seven days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents in the past seven days.