O'Reilly (ORLY) to Report Q3 Earnings: Here's What to Expect
O’Reilly Automotive ORLY is slated to release third-quarter 2023 results on Oct 25, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $10.33 and $4.07 billion, respectively.
For the third quarter, the consensus estimates for O’Reilly’s earnings per share have increased by 3 cents in the past seven days. Its bottom-line estimates imply 12.7% growth from the year-ago reported numbers .
The Zacks Consensus Estimate for ORLY's quarterly revenues suggests a year-over-year increase of 7.1%. Over the trailing four quarters, the company surpassed earnings estimates on all occasions, the average surprise being 5.54%. This is depicted in the graph below:
Q2 Highlights
In the second quarter of 2023, ORLY’s adjusted earnings per share of $10.22 beat the consensus metric of $10.05 and rose 14.5% year over year. The company reported net sales of $4,069 million, topping the Zacks Consensus Estimate of $3,990 million. The top line also rose 11% year over year.
O'Reilly Automotive, Inc. Price and EPS Surprise
O'Reilly Automotive, Inc. price-eps-surprise | O'Reilly Automotive, Inc. Quote
Things to Note
O’Reilly’s wide-ranging product portfolio caters to do-it-yourself (DIY) and do-it-for-me (DIFM) customers, driving comparable store sales growth. Comps in the third quarter of 2023 is expected to grow 4.4%.
Per Automotive News, U.S. light vehicle sales in the third quarter of 2023 topped 3.8 million units, up 17% year over year. Auto parts retailer O’Reilly is expected to have reaped the rewards of an upswing in demand for new vehicles.
Also, the increased complexity of auto parts and repairs is attracting more people to independent repair shops, driving the sales of high-quality auto parts, which is likely to bolster the company’s sales and earnings in the third quarter.
Moreover, upbeat projections for full-year 2023 revenues and EPS spark optimism surrounding third-quarter results. O’Reilly projects 2023 total revenues in the range of $15.4-$15.7 billion, up from the prior guidance of $15.2-$15.5 billion. The current anticipation is higher than $14.41 billion generated in 2022. EPS is now expected in the range of $37.05 - $37.55, up from the previous estimate of $36.5 - $37. The current projection is higher than $33.44 reported in 2022.
The company is poised to benefit from store openings and distribution centers in profitable regions. In addition to opening stores in new markets, ORLY has been actively increasing its store count in less-populated areas. During the second quarter, the company opened 42 new stores. It targets opening 180-190 new stores in 2023. Its expansion plan is likely to benefit the quarter under review.
Earnings Whispers
Our proven model predicts an earnings beat for the automotive parts retailer for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: ORLY has an Earnings ESP of +1.15%. This is because the Most Accurate Estimate is pegged 12 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: It currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, according to our model, also have the right combination of elements to post an earnings beat this time around.
Allison Transmission Holdings ALSN will release third-quarter 2023 results on Oct 25. The company has an Earnings ESP of +8.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.71 per share and $759.2 million, respectively. ALSN surpassed earnings estimates on all occasions, the average surprise being 19.32%.
Oshkosh Corporation OSK will release third-quarter 2023 results on Oct 26. The company has an Earnings ESP of +8.24% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at $2.18 per share and $2.46 billion, respectively. OSK surpassed earnings estimates twice in the trailing four quarters and missed twice, the average surprise being 27.45%.
Cummins CMI will release third-quarter 2023 results on Nov 2. The company has an Earnings ESP of +0.48% and a Zacks Rank #3.
The Zacks Consensus Estimate for Cummin’s to-be-reported quarter’s earnings and revenues is pegged at $4.70 per share and $8.19 billion, respectively. CMI surpassed earnings estimates once in the trailing four quarters and missed thrice, the average negative surprise being 5.51%.
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
Oshkosh Corporation (OSK) : Free Stock Analysis Report
