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O'Reilly (ORLY) Q2 Earnings Miss Mark, 2024 Profit View Cut
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O’Reilly Automotive, Inc. (ORLY - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $10.55, falling short of the Zacks Consensus Estimate of $10.95. The bottom line increased from $10.22 per share reported in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.27 billion, missing the Zacks Consensus Estimate of $4.32 billion. The top line, however, increased 5% year over year.
During the quarter, comparable store sales grew 2.3%. The company opened 27 new stores in the United States and Mexico during the quarter. It operates 23 stores in Canada after completing the acquisition of Vast Auto in January. The total store count was 6,244 as of Jun 30, 2024.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, selling, general and administrative expenses rose 6% year over year to $1.3 billion. Operating income rose to $863 million from $854 million generated in the year-ago period. Net income was $623 million, down from $627 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.8 million shares for $794 million at an average price of $1,012.14 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.2 million shares of common stock for a total investment of $224 million at an average price of $1,036.84 per share. As of Jul 24, the company had nearly $1.28 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $145 million at the end of the reported quarter, down from $279.1 million recorded as of 2023-end. Its long-term debt was $5.4 billion, lower than $5.57 billion as of Dec 31, 2023.
During the reported quarter, O’Reilly generated $949 million in cash from operating activities, compared with the year-ago period’s $937.5 million. Capital expenditures totaled $225.4 million, compared with $237 million in the year-ago period. Free cash flow was $718.2 million, indicating an uptick of 5.4% year over year.
Updated 2024 Outlook
For full-year 2024, O’Reilly estimates total revenues in the range of $16.6-$16.9 billion, down from the prior guidance of $16.8-$17.1 billion. It now expects earnings per share in the range of $40.75-$41.25, down from the previous estimate of 41.35-$41.85. The outlook for comparable store sales growth was revised downward to 2-4% from 3-5%. The outlook for free cash flow remained unchanged at $1.8-$2.1 billion. Capital expenditure guidance remained unchanged in the range of $900 million to $1 billion. The company intends to open 190-200 stores this year.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 5 cents and 4 cents, respectively, in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for RACE’s 2024 and 2025 EPS implies a year-over-year increase of 10.3% and 10.8%, respectively. The luxury automaker surpassed earnings estimates in the trailing four quarters, with the average surprise being 12.6%.
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O'Reilly (ORLY) Q2 Earnings Miss Mark, 2024 Profit View Cut
O’Reilly Automotive, Inc. (ORLY - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $10.55, falling short of the Zacks Consensus Estimate of $10.95. The bottom line increased from $10.22 per share reported in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.27 billion, missing the Zacks Consensus Estimate of $4.32 billion. The top line, however, increased 5% year over year.
During the quarter, comparable store sales grew 2.3%. The company opened 27 new stores in the United States and Mexico during the quarter. It operates 23 stores in Canada after completing the acquisition of Vast Auto in January. The total store count was 6,244 as of Jun 30, 2024.
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 rose 6% year over year to $1.3 billion. Operating income rose to $863 million from $854 million generated in the year-ago period. Net income was $623 million, down from $627 million in the year-ago quarter.
During the reported quarter, O’Reilly repurchased 0.8 million shares for $794 million at an average price of $1,012.14 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.2 million shares of common stock for a total investment of $224 million at an average price of $1,036.84 per share. As of Jul 24, the company had nearly $1.28 billion remaining under the current share repurchase authorization.
It had cash and cash equivalents of $145 million at the end of the reported quarter, down from $279.1 million recorded as of 2023-end. Its long-term debt was $5.4 billion, lower than $5.57 billion as of Dec 31, 2023.
During the reported quarter, O’Reilly generated $949 million in cash from operating activities, compared with the year-ago period’s $937.5 million. Capital expenditures totaled $225.4 million, compared with $237 million in the year-ago period. Free cash flow was $718.2 million, indicating an uptick of 5.4% year over year.
Updated 2024 Outlook
For full-year 2024, O’Reilly estimates total revenues in the range of $16.6-$16.9 billion, down from the prior guidance of $16.8-$17.1 billion. It now expects earnings per share in the range of $40.75-$41.25, down from the previous estimate of 41.35-$41.85. The outlook for comparable store sales growth was revised downward to 2-4% from 3-5%. The outlook for free cash flow remained unchanged at $1.8-$2.1 billion. Capital expenditure guidance remained unchanged in the range of $900 million to $1 billion. The company intends to open 190-200 stores this year.
Zacks Rank & Key Picks
ORLY currently carries a Zacks Rank #4 (Sell).
Better-ranked players in the auto market include Honda (HMC - Free Report) , Allison Transmission (ALSN - Free Report) and Ferrari (RACE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for HMC’s fiscal 2025 and 2026 EPS has moved up by 5 cents and 4 cents, respectively, in the past seven days. The Japanese auto biggie surpassed earnings estimates in the trailing four quarters, with the average surprise being 66.6%.
The Zacks Consensus Estimate for ALSN’s 2024 and 2025 EPS implies a year-over-year uptick of 4% and 12.5%, respectively. The automotive equipment supplier surpassed earnings estimates in the trailing four quarters, with the average surprise being 14.3%.
The Zacks Consensus Estimate for RACE’s 2024 and 2025 EPS implies a year-over-year increase of 10.3% and 10.8%, respectively. The luxury automaker surpassed earnings estimates in the trailing four quarters, with the average surprise being 12.6%.