Is O’Reilly Automotive (ORLY) Still Revving Up? A Look at the Numbers

It’s been a month since O’Reilly Automotive (ORLY) released its last earnings report, and the numbers show that the company’s shares have gone up by 7.6% during that period. Even though this performance is not as strong as the S&P 500, it’s still worth taking a closer look at.

The most recent earnings report showed that O’Reilly Automotive surpassed expectations, with an adjusted earnings per share of $10.72 for the third quarter of 2023, beating the Zacks Consensus Estimate of $10.36. The company also reported quarterly revenues of $4,203.4, surpassing the Zacks Consensus Estimate of $4,070 million. With a year-over-year increase of 10.6%, it’s clear that things are looking quite positive for O’Reilly.

In addition, the company’s comparable store sales grew by 8.7% during the quarter, and 40 new stores were opened in the United States and Mexico. This brought the total store count to 6,111 as of September 30, 2023.

On the financial side, O’Reilly’s operating income increased from $804.2 million to $897.2 million, and its net income also saw a rise from $585.4 million to roughly $650 million. Additionally, the company repurchased a significant number of shares, investing a total of $800 million in the reported quarter.

The company’s cash and cash equivalents did see a slight decrease at the end of the reported quarter, but it still had nearly $712 million remaining under the current share repurchase authorization.

Looking forward, O’Reilly has lifted its outlook for 2023, with increased revenue and earnings per share expectations, as well as a revised forecast for comparable store sales growth. It also plans to open 180-190 new stores in 2023.

It’s also important to note that estimates for the company have been trending upward in the past month, and it currently holds a solid VGM Score. O’Reilly Automotive is looking at a Zacks Rank #3 (Hold), and experts believe this could translate into an in-line return for the stock in the next few months.

In conclusion, while O’Reilly Automotive’s recent performance has been positive, it’s essential to stay updated on the latest recommendations and reports to make informed investment decisions. As always, investors should conduct thorough research and consider consulting financial advisors or reliable sources before making any investment decisions.