U.S. markets closed
  • S&P Futures

    3,729.00
    -3.00 (-0.08%)
     
  • Dow Futures

    29,730.00
    -20.00 (-0.07%)
     
  • Nasdaq Futures

    11,537.00
    -18.75 (-0.16%)
     
  • Russell 2000 Futures

    1,720.80
    0.00 (0.00%)
     
  • Crude Oil

    82.23
    +0.08 (+0.10%)
     
  • Gold

    1,663.80
    -6.20 (-0.37%)
     
  • Silver

    18.78
    -0.09 (-0.50%)
     
  • EUR/USD

    0.9686
    -0.0053 (-0.54%)
     
  • 10-Yr Bond

    3.7050
    -0.2590 (-6.53%)
     
  • Vix

    30.18
    -2.42 (-7.42%)
     
  • GBP/USD

    1.0803
    -0.0083 (-0.76%)
     
  • USD/JPY

    144.2600
    +0.1380 (+0.10%)
     
  • BTC-USD

    19,509.74
    +507.37 (+2.67%)
     
  • CMC Crypto 200

    446.32
    +17.54 (+4.09%)
     
  • FTSE 100

    7,005.39
    +20.80 (+0.30%)
     
  • Nikkei 225

    26,431.45
    +257.47 (+0.98%)
     

O'Reilly (ORLY) Looks Poised to Trump Q1 Earnings Estimates

·4 min read

O'Reilly Automotive, Inc. ORLY is slated to release first-quarter 2022 results on Apr 27, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $7.47 per share and $3.29 billion, respectively.

This U.S.-based specialty retailer of automotive parts came up with better-than-anticipated results in the last reported quarter on the back of remarkable growth in comparable-store sales. Over the trailing four quarters, the company surpassed earnings estimates on all occasions, with the average being 22.2%. This is depicted in the graph below:

O'Reilly Automotive, Inc. Price and EPS Surprise

O'Reilly Automotive, Inc. Price and EPS Surprise
O'Reilly Automotive, Inc. Price and EPS Surprise

O'Reilly Automotive, Inc. price-eps-surprise | O'Reilly Automotive, Inc. Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for O’Reilly’s first-quarter earnings per share has been revised upward by 2 cents in the past seven days. The bottom-line projection implies year-over-year growth of 5.9%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 6.5%.

Earnings Whispers

Our proven model predicts an earnings beat for O’Reilly this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.

Earnings ESP: O’Reilly has an Earnings ESP of +4.30%. This is because the Most Accurate Estimate is pegged 32 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: O’Reilly carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Robust demand for vehicles is likely to have supported the sales of O’Reilly’s products and services. ORLY’s wide-ranging product portfolio serving the Do-it-Yourself and Do-it-for-Me customers provides the company with a competitive edge, and is anticipated to have fueled comparable-store sales growth during the first quarter. This, in turn, is likely to have buoyed O’Reilly’s top line during the January-March period.

Further, O’Reilly’s customer-centric business model and surging demand for technologically-advanced auto parts are likely to have bolstered sales during the March-end quarter. Robust digitization efforts are also likely to have boosted the company’s performance during the quarter in discussion.

ORLY is also likely to have gained from the opening of new stores and distribution centers in profitable regions during the to-be-reported quarter. ORLY’s upbeat full-year 2022 earnings and sales outlook also instills optimism for the to-be-reported quarter.

Other Stocks With Favorable Combination

Here are a few other stocks in the auto sector lined up to release quarterly results soon. Encouragingly, our model predicts an earnings beat for these stocks as well:

Allison Transmission ALSN has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.

The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.

LKQ Corp LKQ has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.

The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.

Cummins, Inc. CMI has an Earnings ESP of +1.68% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.

The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cummins Inc. (CMI) : Free Stock Analysis Report

O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report

Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report

LKQ Corporation (LKQ) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research