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O'Reilly (ORLY) Q4 Earnings Top Estimates, Revenues Miss
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O’Reilly Automotive, Inc. (ORLY - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $9.26, beating the Zacks Consensus Estimate of $9.07. The bottom line increased from $8.37 per share in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $3,832 million, marginally missing the Zacks Consensus Estimate of $3,838 million. The top line, however, increased 5.2% year over year.
During the quarter, comparable store sales grew 3.4%. The company opened 47 new stores in the United States and Mexico. The total store count was 6,157 as of Dec 31, 2023.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses flared up 6.6% year over year to $1.25 billion. Operating income rose to $718.7 million from $682.2 million generated in the year-ago period. Net income was roughly $552.5 million, up from $528.6 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.6 million shares for $560 million at an average price of $922.86 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 $102 million at an average price of $967.63 per share. As of Feb 7, the company had nearly $2.47 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $279.1 million at the end of the reported quarter, up from $108.6 million recorded as of 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $516.4 million in cash from operating activities, down from the year-ago period’s $795.2 million. Capital expenditures totaled $252.3 million, rising from $174.5 million in the year-ago period. Free cash flow came in at $256 million, indicating a decline of 40% year over year.
2024 Outlook
For 2024, O’Reilly envisions total revenues in the range of $16.8-$17.1 billion, up from $15.8 billion reported in 2023. Earnings per share are expected in the range of $41.05-$41.55, up from $38.47 reported in 2023. The comparable store sales growth is expected between 3% and 5%. Free cash flow is projected in the band of $1.8-$2.1 billion. Capital expenditures are expected between $900 million and $1 billion. The company intends to open 190-200 stores this year.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 2 cents and 25 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.
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O'Reilly (ORLY) Q4 Earnings Top Estimates, Revenues Miss
O’Reilly Automotive, Inc. (ORLY - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $9.26, beating the Zacks Consensus Estimate of $9.07. The bottom line increased from $8.37 per share in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $3,832 million, marginally missing the Zacks Consensus Estimate of $3,838 million. The top line, however, increased 5.2% year over year.
During the quarter, comparable store sales grew 3.4%. The company opened 47 new stores in the United States and Mexico. The total store count was 6,157 as of Dec 31, 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 6.6% year over year to $1.25 billion. Operating income rose to $718.7 million from $682.2 million generated in the year-ago period. Net income was roughly $552.5 million, up from $528.6 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.6 million shares for $560 million at an average price of $922.86 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 $102 million at an average price of $967.63 per share. As of Feb 7, the company had nearly $2.47 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $279.1 million at the end of the reported quarter, up from $108.6 million recorded as of 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.
During the reported quarter, O’Reilly generated $516.4 million in cash from operating activities, down from the year-ago period’s $795.2 million. Capital expenditures totaled $252.3 million, rising from $174.5 million in the year-ago period. Free cash flow came in at $256 million, indicating a decline of 40% year over year.
2024 Outlook
For 2024, O’Reilly envisions total revenues in the range of $16.8-$17.1 billion, up from $15.8 billion reported in 2023. Earnings per share are expected in the range of $41.05-$41.55, up from $38.47 reported in 2023. The comparable store sales growth is expected between 3% and 5%. Free cash flow is projected in the band of $1.8-$2.1 billion. Capital expenditures are expected between $900 million and $1 billion. The company intends to open 190-200 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Oshkosh Corporation (OSK - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 2 cents and 25 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.