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O'Reilly's (ORLY) Q4 Earnings Top Estimates on Comps Growth

·4 min read

O’Reilly Automotive ORLY reported fourth-quarter 2021 adjusted earnings per share of $7.64, surpassing the Zacks Consensus Estimate of $6, led by growth in comparable store sales. Comps grew 14.5% year over year in the quarter, topping the Zacks Consensus Estimate of comps growth of 4.83%. The bottom line also increased from $5.40 a share recorded in the prior-year quarter.

This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3,291.5 million, beating the consensus mark of $3,066.7 million. The top line was also 16.36% higher than the prior-year figure of $2,828.8 million. During the quarter, the company opened 19 new stores in the United States and 25 in Mexico, bringing the total store count to 5,784 as of Dec 31, 2021.

Financials, Share Repurchase & Costs

In the December quarter, selling, general and administrative expenses flared up 13% year over year to $1,058.6 million. Nonetheless, operating income edged up 27% to $676 million from $534 million on higher sales. Net income amounted to $519 million, up 32% from $393 million generated in the year-ago quarter.

During the reported quarter, O’Reilly repurchased 0.7 million shares for $469 million at an average price of $637.15 per share. As of Feb 09, 2022, the company had $1.79 billion remaining under the current share-repurchase authorization.

It had cash and cash equivalents of $362.1 million as of Dec 31, 2021. Its long-term debt was $3,827 million, lower than the year-ago level of $4,123.2 million.

During the reported quarter, O’Reilly generated $642 million in cash from operating activities compared with the year-ago period’s $487.4 million. Capital expenditure totaled $102.2 million, almost on par with the year-ago quarter. Free cash flow rose 13% to $355 million.

Outlook for 2022

ORLY projects total revenues within the range of $14.2-$14.5 billion. Earnings per share are envisioned within the band of $32.35-$32.85. It forecasts comparable store sales growth within 5-7%. Also, it envisions free cash flow in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 million.

Zacks Rank & Key Picks

Currently, O’Reilly has a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include Goodyear Tire GT and Tesla TSLA, each sporting a Zacks Rank #1(Strong Buy) and Genuine Parts GPC, carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.

Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 52.8% over a year.

Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 14.9% over a year.

Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.

Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 31.4% over a year.


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