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Why Is O'Reilly Automotive (ORLY) Up 4.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have added about 4.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
O'Reilly Q2 Earnings Beat Estimates
O’Reilly reported second-quarter 2025 adjusted earnings per share (EPS) of 78 cents, which marginally beat the Zacks Consensus Estimate of 77 cents. The bottom line also increased from 70 cents in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $4,525 million, missing the Zacks Consensus Estimate of $4,532 million. The top line, however, increased 6% year over year.
During the quarter, comparable store sales grew 4.1% and the company opened 67 stores in the United States and Mexico. The total store count was 6,483 as of June 30, 2025.
Q2 Financials, Share Repurchase & Costs
In the reported quarter, selling, general and administrative expenses rose 8% year over year to $1.41 billion. Operating income increased 6% year over year to $914 million. Net income was $668.6 million, up from $622.8 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 6.8 million shares for $617 million at an average price of $90.71 per share. From the end of the second quarter until July 23, 2025, the company repurchased an additional 1.7 million shares of common stock for a total investment of $160 million at an average price of $91.45 per share. As of July 23, ORLY had nearly $1.16 billion remaining under the current share repurchase authorization.
As of June 30, 2025, it had cash and cash equivalents of $198.6 million, an increase from $145 million recorded as of June 30, 2024. Its long-term debt was $5.82 billion, up from $5.4 billion as of June 30, 2024.
During the reported quarter, O’Reilly generated $1.51 billion in cash from operating activities compared with the year-ago period’s $1.65 billion. Capital expenditures totaled $300.7 million compared with $225.4 million in the year-ago period. Free cash flow was $448.8 million, down 37.5% year over year.
2025 Outlook Updated
For 2025, O’Reilly estimates total revenues in the range of $17.5-$17.8 billion, compared to the previous estimate of $17.4-$17.7 billion. It expects EPS in the band of $2.85-$2.95. Comparable store sales are estimated to grow 3-4.5% compared to the previous estimate of 2-4%. The outlook for free cash flow is anticipated to be between $1.6 billion and $1.9 billion. Capital expenditure guidance is expected to be between $1.2 billion and $1.3 billion. The company intends to open 200-210 stores this year.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, O'Reilly Automotive has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
O'Reilly Automotive is part of the Zacks Automotive - Retail and Wholesale - Parts industry. Over the past month, Genuine Parts (GPC - Free Report) , a stock from the same industry, has gained 2.3%. The company reported its results for the quarter ended June 2025 more than a month ago.
Genuine Parts reported revenues of $6.16 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $2.10 for the same period compares with $2.44 a year ago.
For the current quarter, Genuine Parts is expected to post earnings of $2.02 per share, indicating a change of +7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.
Genuine Parts has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is O'Reilly Automotive (ORLY) Up 4.8% Since Last Earnings Report?
A month has gone by since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have added about 4.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
O'Reilly Q2 Earnings Beat Estimates
O’Reilly reported second-quarter 2025 adjusted earnings per share (EPS) of 78 cents, which marginally beat the Zacks Consensus Estimate of 77 cents. The bottom line also increased from 70 cents in the prior-year quarter.
The automotive parts retailer registered quarterly revenues of $4,525 million, missing the Zacks Consensus Estimate of $4,532 million. The top line, however, increased 6% year over year.
During the quarter, comparable store sales grew 4.1% and the company opened 67 stores in the United States and Mexico. The total store count was 6,483 as of June 30, 2025.
Q2 Financials, Share Repurchase & Costs
In the reported quarter, selling, general and administrative expenses rose 8% year over year to $1.41 billion. Operating income increased 6% year over year to $914 million. Net income was $668.6 million, up from $622.8 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 6.8 million shares for $617 million at an average price of $90.71 per share. From the end of the second quarter until July 23, 2025, the company repurchased an additional 1.7 million shares of common stock for a total investment of $160 million at an average price of $91.45 per share. As of July 23, ORLY had nearly $1.16 billion remaining under the current share repurchase authorization.
As of June 30, 2025, it had cash and cash equivalents of $198.6 million, an increase from $145 million recorded as of June 30, 2024. Its long-term debt was $5.82 billion, up from $5.4 billion as of June 30, 2024.
During the reported quarter, O’Reilly generated $1.51 billion in cash from operating activities compared with the year-ago period’s $1.65 billion. Capital expenditures totaled $300.7 million compared with $225.4 million in the year-ago period. Free cash flow was $448.8 million, down 37.5% year over year.
2025 Outlook Updated
For 2025, O’Reilly estimates total revenues in the range of $17.5-$17.8 billion, compared to the previous estimate of $17.4-$17.7 billion. It expects EPS in the band of $2.85-$2.95. Comparable store sales are estimated to grow 3-4.5% compared to the previous estimate of 2-4%. The outlook for free cash flow is anticipated to be between $1.6 billion and $1.9 billion. Capital expenditure guidance is expected to be between $1.2 billion and $1.3 billion. The company intends to open 200-210 stores this year.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, O'Reilly Automotive has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
O'Reilly Automotive is part of the Zacks Automotive - Retail and Wholesale - Parts industry. Over the past month, Genuine Parts (GPC - Free Report) , a stock from the same industry, has gained 2.3%. The company reported its results for the quarter ended June 2025 more than a month ago.
Genuine Parts reported revenues of $6.16 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $2.10 for the same period compares with $2.44 a year ago.
For the current quarter, Genuine Parts is expected to post earnings of $2.02 per share, indicating a change of +7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.
Genuine Parts has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.