O’Reilly Automotive Inc. Earnings Cheat Sheet: Third Consecutive Quarter of Profit Growth

Wall St. Cheat Sheet

S&P 500 component O’Reilly Automotive, Inc. reported net income above Wall Street’s expectations for the third quarter. O’Reilly Automotive offers automotive aftermarket parts, tools, supplies, and accessories to individual customers and professional installers.

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O’Reilly Automotive Earnings Cheat Sheet for the Third Quarter

Results: Net income for the auto parts store rose to $148.4 million ($1.10 per share) vs. $116.5 million (82 cents per share) in the same quarter a year earlier. This marks a rise of 27.4% from the year earlier quarter.

Revenue: Rose 7.7% to $1.54 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ORLY beat the mean analyst estimate of $1 per share. Analysts were expecting revenue of $1.51 billion.

Quoting Management: Commenting on the Company’s quarterly results, Greg Henslee, Co-President and CEO stated, “We are pleased to report another successful quarter. Our results are highlighted by a solid 4.8% comparable store sales increase on top of an extremely strong comparable store sales increase of 11.1% last year, a 50 basis point improvement in gross margin and a record-breaking 15.7% operating margin. The continued trend of solid comparable store sales increases is the direct result of the hard work and commitment to unsurpassed customer service from each of our dedicated Team Members. Our relentless focus on expense control, at all levels, led to the 130 basis point improvement in adjusted operating margin. I am very pleased with the performance of Team O’Reilly and would like to thank all of our Team Members for their commitment to exceeding customer expectations.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 34.3% and in the first quarter, the figure rose 5.1%.

Revenue has risen the past four quarters. Revenue increased 7.1% to $1.48 billion in the second quarter. The figure rose 8% in the first quarter from the year earlier and climbed 11.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 96 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 83 cents per share, up from 81 cents ninety days ago. For the fiscal year, the average estimate has moved up from $3.59 a share to $3.61 over the last ninety days.

Competitors to Watch: Advance Auto Parts, Inc. , AutoZone, Inc. , The Pep Boys – Manny, Moe & Jack , U.S. Auto Parts Network, Inc. .

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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