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Can O'Reilly (ORLY) Maintain its Earnings Beat Streak in Q2?

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·3 min read
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O'Reilly Automotive, Inc. ORLY is slated to release second-quarter 2021 results on Jul 28, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $7.08 per share on revenues of $3.14 billion.

This U.S.-based specialty retailer of automotive parts delivered better-than-anticipated results in the last reported quarter on remarkable growth in comparable store sales.

Over the trailing four quarters, the company surpassed estimates on all occasions, the average surprise being 30.5%. This is depicted in the graph below:

OReilly Automotive, Inc. Price and EPS Surprise

OReilly Automotive, Inc. Price and EPS Surprise
OReilly Automotive, Inc. Price and EPS Surprise

OReilly Automotive, Inc. price-eps-surprise | OReilly Automotive, Inc. Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for O’Reilly’s second-quarter earnings per share has been revised upward by 11 cents in the past seven days. However, it compares unfavorably with the year-ago quarter’s earnings of $7.1 per share, indicating a year-on-year drop of 0.3%. Nonetheless, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 1.6%.

Earnings Whispers

Our proven model predicts an earnings beat for O’Reilly this time around. 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 +20.5%. This is because the Most Accurate Estimate comes in $1.45 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 currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Note

O’Reilly’s wide-ranging product portfolio serving Do-it-Yourself (DIY) and Do-it-for-Me (DIFM) customers provides the company a competitive edge and is anticipated to have fueled its comparable store sales growth during the second quarter. This, in turn, is expected to have buoyed O’Reilly’s top line during the April-June quarter.

Further, the company is likely to have gained from the opening of new stores and distribution centers in profitable regions during the to-be-reported quarter. The Zacks Consensus Estimate for the number of stores at the end of the second quarter is pegged at 5,717, calling for a rise from the 5,583 and 5,682 recorded in the year-ago period and the prior quarter, respectively.

Also, O’Reilly’s customer-centric business model and surging demand for technologically-advanced auto parts are likely to have boosted the firm’s sales during the June-end quarter.

Other Stocks With Favorable Combinations

Along with O’Reilly, here are a few other stocks lined up to release second-quarter results soon. Encouragingly, our model predicts earnings beats for these stocks as well:

Allison Transmission ALSN has an Earnings ESP of +0.08% and carries a Zacks Rank #3, currently. The company is set to announce second-quarter 2021 results on Jul 29.

Sonic Automotive SAH has an Earnings ESP of +18.53% and holds a Zacks Rank of 2, at present. The company is scheduled to report quarterly numbers on Jul 29.

Tenneco TEN has an Earnings ESP of +1.2% and currently carries a Zacks Rank #3. The company will release second-quarter results on Aug 5.


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OReilly Automotive, Inc. (ORLY) : Free Stock Analysis Report

Tenneco Inc. (TEN) : Free Stock Analysis Report

Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report

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

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