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O'Reilly (ORLY) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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O’Reilly Automotive Inc.’s (ORLY - Free Report) adjusted earnings per share came in at $4.28 in second-quarter 2018, a 38% surge from $3.10 in the prior-year quarter. The figure also beat the Zacks Consensus Estimate of $4.04.
During the reported quarter, net income improved 25% to $353 million (14.4% of sales) from $283 million (12.3% of sales) recorded in the year-ago period.
The company’s quarterly revenues rose 7% year over year to $2.46 billion. Moreover, the top line surpassed the Zacks Consensus Estimate of $2.43 billion.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
Gross profit went up 7% to $1.29 billion (or 52.5% of sales) from $1.20 billion (or 52.4% of sales) reported in the year-earlier quarter. Selling, general and administrative expenses rose 9% year over year to $809 million (33% of sales) from $743 million (32.4% of sales). Operating income increased 5% to $479 million (or 19.5% of sales) from $457 million (or 20% of sales) reported a year ago.
Store Information
During the second quarter, O’Reilly opened 54 stores and closed 4. Total store count was 5,147 as of Jun 30, 2018. Sales per weighted-average store increased to $476,000 from $463,000 in second-quarter 2017.
Share Repurchases
During the reported quarter, O’Reilly repurchased 1.6 million shares for $416 million, reflecting an average price of $264.38 per share. Subsequent to the end of the quarter, the company purchased additional 0.5 million shares for an investment of $132 million.
Since the company’s share-repurchase program inception in January 2011, O’Reilly has repurchased 70.5 million shares for $10.13 billion, indicating an average price of $143.76 per share.
Financial Position
O’Reilly reported cash and cash equivalents of $36.9 million at the end of the second quarter, up from $26.5 million at the end of the year-ago period. Its long-term debt increased to $3.25 billion as of June 30, 2018 compared with $2.61 billion as of June 30, 2017.
The company generated $875.2 million in cash from operating activities during the quarter under review compared with $710.5 million recorded in the prior-year period. Capital expenditures decreased to $109.3 million in the quarter under consideration from $116.9 million in the year-ago quarter. At the end of the quarter, its free cash flow also improved to $320.4 million from $207.8 million witnessed in the comparable quarter last year.
Guidance
For third-quarter 2018, O’Reilly projects earnings per share of $4.2-$4.3. Further, the company expects consolidated comparable store sales to climb 2-4%.
For 2018, O’Reilly raised its earnings per share outlook to $15.7-$15.8 from $15.3-$15.4. However, it reiterated total revenue guidance of $9.4-$9.6 billion for the full year. Also, the company reaffirmed the consolidated comparable store-sales growth of 2-4% and gross margin view of 52.5-53%. Additionally, it confirmed the operating margin outlook of 18.5-19%.
Further, O’Reilly retained its capital expenditure range of $490-$520 million. Also, for 2018, the company kept its free cash flow view unchanged between $1.1 billion and $1.2 billion.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have surged 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 5.3%.
Volvo has an expected long-term growth rate of 15%. The stock has risen 2.9% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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O'Reilly (ORLY) Q2 Earnings & Revenues Top Estimates, Up Y/Y
O’Reilly Automotive Inc.’s (ORLY - Free Report) adjusted earnings per share came in at $4.28 in second-quarter 2018, a 38% surge from $3.10 in the prior-year quarter. The figure also beat the Zacks Consensus Estimate of $4.04.
During the reported quarter, net income improved 25% to $353 million (14.4% of sales) from $283 million (12.3% of sales) recorded in the year-ago period.
The company’s quarterly revenues rose 7% year over year to $2.46 billion. Moreover, the top line surpassed the Zacks Consensus Estimate of $2.43 billion.
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise
O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise | O'Reilly Automotive, Inc. Quote
Gross profit went up 7% to $1.29 billion (or 52.5% of sales) from $1.20 billion (or 52.4% of sales) reported in the year-earlier quarter. Selling, general and administrative expenses rose 9% year over year to $809 million (33% of sales) from $743 million (32.4% of sales). Operating income increased 5% to $479 million (or 19.5% of sales) from $457 million (or 20% of sales) reported a year ago.
Store Information
During the second quarter, O’Reilly opened 54 stores and closed 4. Total store count was 5,147 as of Jun 30, 2018. Sales per weighted-average store increased to $476,000 from $463,000 in second-quarter 2017.
Share Repurchases
During the reported quarter, O’Reilly repurchased 1.6 million shares for $416 million, reflecting an average price of $264.38 per share. Subsequent to the end of the quarter, the company purchased additional 0.5 million shares for an investment of $132 million.
Since the company’s share-repurchase program inception in January 2011, O’Reilly has repurchased 70.5 million shares for $10.13 billion, indicating an average price of $143.76 per share.
Financial Position
O’Reilly reported cash and cash equivalents of $36.9 million at the end of the second quarter, up from $26.5 million at the end of the year-ago period. Its long-term debt increased to $3.25 billion as of June 30, 2018 compared with $2.61 billion as of June 30, 2017.
The company generated $875.2 million in cash from operating activities during the quarter under review compared with $710.5 million recorded in the prior-year period. Capital expenditures decreased to $109.3 million in the quarter under consideration from $116.9 million in the year-ago quarter. At the end of the quarter, its free cash flow also improved to $320.4 million from $207.8 million witnessed in the comparable quarter last year.
Guidance
For third-quarter 2018, O’Reilly projects earnings per share of $4.2-$4.3. Further, the company expects consolidated comparable store sales to climb 2-4%.
For 2018, O’Reilly raised its earnings per share outlook to $15.7-$15.8 from $15.3-$15.4. However, it reiterated total revenue guidance of $9.4-$9.6 billion for the full year. Also, the company reaffirmed the consolidated comparable store-sales growth of 2-4% and gross margin view of 52.5-53%. Additionally, it confirmed the operating margin outlook of 18.5-19%.
Further, O’Reilly retained its capital expenditure range of $490-$520 million. Also, for 2018, the company kept its free cash flow view unchanged between $1.1 billion and $1.2 billion.
Zacks Rank & Other Key Picks
O’Reilly currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include Fox Factory Holding Corporation (FOXF - Free Report) , Oshkosh Corporation (OSK - Free Report) and AB Volvo (VLVLY - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have surged 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 5.3%.
Volvo has an expected long-term growth rate of 15%. The stock has risen 2.9% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>